Tag: Coinstats

Do you know why most people lose money in every new crypto project they invest in? The answer is not wrong purchase timing or bad market conditions; it is the lack of understanding of the project. If you want to understand a crypto project, one of the best places to start is by reading its whitepaper. But if you’re new to the space, whitepapers can be daunting. They’re often long and filled with technical language.

This guide will break down a crypto whitepaper structure step-by-step so that you can learn how to read through it like a pro and understand what causes projects to succeed or fail.

What Is a Cryptocurrency Whitepaper?

A cryptocurrency whitepaper is best described as a document that guides readers, prospective investors, and the general crypto market to the fundamentals of crypto projects or blockchain-based projects. It acts as an informational resource that projects use to introduce their ideas, discuss its capabilities and technical processes, explain how it works, and talk about how it will benefit both users of the platform and investors. 

While whitepapers vary in length and depth (depending on the project), they all provide essential details such as their purpose, goals, architecture, implementation plans, value propositions, and monetary policies. The flows in a whitepaper stem from easy-to-understand problems the project is solving to more technical and complex issues. The whitepaper outlines and simplifies these complex concepts by providing easy-to-comprehend diagrams and explanations.  

Therefore, reading through a whitepaper before investing in any cryptocurrency or blockchain-based product is recommended.

Track the projects you invested in with CoinStats, the top crypto, DeFi, and NFT tracker.

Why Are Whitepapers Important in the Crypto Industry?

Below are three major reasons why a cryptocurrency whitepaper is important for every investor. 

Education

Cryptocurrency whitepapers are a highly valuable form of education for crypto users. These documents bridge the gap between vast amounts of technical information about a crypto project and the user, making it easy to understand complex ideas and protocols.

Whitepapers provide concise yet comprehensive overviews of cryptocurrencies and blockchain projects in a more digestible format. They are essential in onboarding new users into the space while helping them make informed decisions regarding investing or using related technologies.

Fast Fact: The Bitcoin whitepaper is a classic example of boiling down the most important information about the Bitcoin network and its characteristics into a 10-page document in the simplest way possible.

Cryptocurrency whitepapers are an invaluable source of accurate knowledge that users should regularly refer to when looking for reliable information about a project.

Investment

The crypto whitepaper has become an increasingly important tool in educating investors about the crypto project. Before committing to investing in any project, a smart investor must do extensive background research. The whitepaper is a great starting point for this due to its concise and no-nonsense approach to detailing the underlying technology.

Whitepapers can include information such as project roadmap and technical specifications essential for investors to understand before jumping into an investment opportunity. Additionally, having transparency about the project’s strategy can help reassure investors of their decision.

A crypto whitepaper overviews the project’s original goals and plans, helping potential investors make informed decisions regarding their portfolio.

Identifying Red Flags

A whitepaper is an invaluable resource for anyone looking to invest in cryptocurrency, as they provide vital insight into the workings of the project and its potential future. Whitepapers can help alert investors to any potential red flags, such as a lack of security measures or a proposed timeline that would be difficult to stick to.

Furthermore, reading and understanding a whitepaper’s contents can give you an idea of its technical knowledge and the team’s ability to deliver on what is promised. Reading through each of these documents is vital when considering investing in any digital currency. Not only do they provide essential information about what you can expect out of your investment, but they also warn investors against potentially risky investments.

While checking through the smart contracts of a decentralized application platform might be more technical, anybody who can read can know a project’s worth from the whitepaper. This is what makes whitepapers important to the cryptocurrency community.

Standard Whitepaper Components

• Abstract: Here, you’ll find an overview of the project and its goals.
• Introduction: This section introduces the project and provides some background information while introducing the problem that they are trying to solve.
• Technical Details: Here, you’ll find detailed information about the technology powering the project, including descriptions of protocol layers and consensus mechanisms.
• Tokenomics: This section outlines how tokens will be used, distributed, and valued within the project.
• Business Model & Use Cases: About how the project plans to create value for investors and other stakeholders, as well as any potential use cases or applications.
• Roadmap & Milestones: A roadmap is usually included that outlines the project’s key milestones and activities planned over time to reach them.
• Team & Advisors: Here, you can find information about the team behind the project – their experience, background, and involvement in similar projects in the past.
• Conclusion: This section should summarize the prior sections’ points, provide a clear call to action for potential investors, and stress how they intend to solve the problem stated.

How to Read and Understand a Crypto Whitepaper?

Reading and understanding a crypto whitepaper is no small feat, but with the right approach, anyone can do it. Whitepapers are technical and often dense documents, so it’s important to go in with an open mind and be prepared to do some research if you find yourself confused by anything. Here’s a step-by-step guide to help you understand a whitepaper.

Get to Know the Project

Many crypto projects exist without a clear goal in view. Before investing in any cryptocurrency project, read the overview of the whitepaper. Analyse its proposed purpose, goals, and use cases. Check how big the market opportunity is and who the existing players are in the space. Check if the project is doing anything better than its predecessors and if there are statistics backing its vision statements.

Examine the Team

Look into the team behind the project — their experience and involvement in similar projects can give insight into their capabilities and potential success. Pseudonymous owners are, more often than not, a big red flag, and unserious owners can put a dent in investors’ aspirations and their pockets. For example, in the Ethereum whitepaper, we can see how solid and amazing their team is, which increases the trust in the project.

Understand Tokenomics

Review the tokenomics to determine how tokens will be used, distributed, and valued within the project. Moreover, check if the solution the company is proffering needs the blockchain. If it does, is there a need for a crypto token? If yes, will the token appreciate in value? In what phases will the token be released? What will the token distribution be like? These questions can help uncover some hard truths from even good projects. 

Understand Regulatory Compliance 

Familiarize yourself with applicable regulations to understand what actions may need to be taken for the project to remain compliant with national laws or industry standards. Also, check if the project has legal standing in the country or zone they primarily operate in. 

Look at Roadmap & Milestones

Compare the roadmap against current market conditions to see if it is feasible for them to meet stated milestones on time and within budget. 

Major Red Flags to Avoid When Reading a Whitepaper

No Use Case

Many tokenized crypto projects have no reason to exist in the first place. They are just built on the premise of hopes and pump and dump. You don’t want to be at the receiving end of a crypto pump-and-dump scheme, so it is preferable to stay out of any project that offers hope without a practicable way of achieving those targets. 

Disoriented Team

A disoriented team can be a red flag in a crypto whitepaper, as it suggests a lack of clear direction and leadership within the project. This can lead to delays in development, miscommunication, and a lack of accountability.

Additionally, a disorganized team may indicate a lack of experience and expertise in the field, which can raise concerns about the project’s ability to achieve its goals. It’s important to research the team behind a crypto project before investing and to look for signs of a well-structured and experienced team.

Poor Language

Poor language in a crypto whitepaper can be a red flag for potential investors and users. If a whitepaper is poorly written or uses jargon that is difficult to understand, it can indicate a lack of professionalism and attention to detail on the part of the project’s developers. This can lead to concerns about the project’s ability to deliver on its promises and its overall credibility.

Additionally, poor language in a whitepaper can also indicate a lack of understanding of the technology behind the project. This can raise questions about the expertise and qualifications of the project’s team and whether they have the necessary knowledge and experience to develop and maintain a successful project.

Grandiose Promises

Grandiose promises in a crypto project can be a red flag as they may indicate that the project is not well-researched or that the team is more focused on making a quick profit rather than building a sustainable project.

These promises may include unrealistic returns on investment, overly ambitious timelines, or unproven technology. It is important to thoroughly research any crypto project before investing and to be wary of any that make grandiose promises. 

Absent Whitepaper

An absent whitepaper may indicate that the project is not well-planned or has not been fully developed. It also suggests that the team behind the project may not have the necessary knowledge or experience to execute the project’s goals. Without a whitepaper, investors and potential partners have little to no information about the project’s technical details, roadmap, and long-term vision. This makes it difficult for them to evaluate the project’s potential for success and make informed decisions about investing or partnering with the project.

Additionally, an absent whitepaper may also indicate that the project is a scam. Many fraudulent projects don’t have a whitepaper or have a poorly written one, as they have no intention of delivering on their promises.

Bottom Line

A crypto whitepaper is an essential tool for any serious cryptocurrency investor. By understanding what a whitepaper is, why they are important, and how to read one, you will be better equipped to make informed investment decisions in cryptocurrency.

Remember these key takeaways the next time you sit down to read a crypto whitepaper: look for clarity, assess the team’s qualifications, gauge the community reception, and pay attention to red flags. With this framework in mind, go forth and start reading some whitepapers and make this an integral part of your crypto research.

Why Is Aptos Growing in January 2023?

Aptos (APT) has been making headlines in the crypto space over the last week. The coin has rallied over 300% in just a few days, surpassing popular coins such as Solana (SOL), Ethereum (ETH), and even Bitcoin (…

VVS Finance, or Very Very Simple Finance, is an automated market maker (AMM) DEX and the largest project built on the Cronos blockchain, launched by Crypto.com in 2021.

VVS facilitates liquidity pools, swaps, and staking and offers an intuitive UI aiming to drive global adoption of DeFi. 

Read on for a deep dive into the VVS Finance protocol and its key features. 

What Is VVS Finance?

VVS Finance is a decentralized finance (DeFi) platform built on the Cronos blockchain. It was created to simplify the DeFi market for everyone and empower the masses to take control of their finances. 

To make DeFi more accessible to billions of consumers worldwide, VVS Finance offers fast transactions, minimal charges, and high potential earnings. The DeFi platform also intends to create passive revenue streams for users through various options, such as yield farming.

Definition: Yield farming is an investment strategy allowing users to lend their digital assets in exchange for benefits like interest or a share of the platform’s transaction fees.

Based on the Cronos blockchain, VVS Finance enables users to swap cryptocurrencies or stake their digital assets to provide liquidity in different liquidity pools. In exchange, VVS Finance allows investors to receive two-thirds of the collected swap fees. Similarly, the platform permits users to collect liquidity awards in the form of 0.2% of trading transaction fees.  

The use of the AMM protocol enables VVS Finance to provide incentives to users to ensure long-term sustainable growth. The platform focuses on making it simple for users to transfer tokens and receive dividends “while having fun.” VVS Finance emphasizes the “fun” aspect of DeFi to onboard as many users as possible, including those with little to no prior experience in blockchain and cryptocurrency. The VVS team believes the more users on the platform, the better value there will be for network participants. 

Who Created VVS Finance?

The VVS Finance team calls its members the “Craftsmen” – “Coming from a deep product design background, a team of humble farmers got together, determined to build DeFi products for our aunts and neighbors, to bring amazing protocols to the masses.” 

While staying anonymous, VVS Finance has successfully created several valuable partnerships with key strategic partners, such as the Crypto.org and Crypto.com ecosystems. 

What makes VVS Finance Unique?

VVS Finance’s unique selling points (USPs) include the following:

Bling Swap

Bling Swap is an algorithmic routing system that enables users to swap tokens across several liquidity pools to obtain a better price for the requested pair. Users can swap tokens for a small fee of 0.3%. 

Liquidity Provision

Users can become Liquidity-Providers (LPs) by adding tokens to a liquidity pool. As evidence of their share of the pool’s assets, each LP is given a CRC-20 pool token (LP token). To trade through their liquidity pools, users must pay swap fees to LPs.

• Liquidity providers get two-thirds of swap fees (0.2% of swap volume at launch);
• 0.1% of the swap volume at launch, or one-third of swap fees, is held in treasury.

The swap fees are kept in liquidity pools’ reserves. Users will receive their proportionate part in exchange for their share of the reserves when pool tokens are returned. 

Before choosing to contribute to a liquidity pool, LPs are advised to weigh the risk of impermanent loss against the anticipated share of fees and income because they may experience impermanent loss if the tokens’ prices decrease.

CRYSTAL Farming

LPs can stake their LP tokens in “Crystal Farms” to get VVS tokens as rewards. 

• View: Users can view the eligible pool, as well as the staked, earned, and APR percentages for each pool (accessible after Pioneer Farming Mode);
• Stake: Allows users to pay gas fees and quickly stake qualified LP tokens in a few clicks;
• Claim: Facilitates customers’ quick and easy claims of their accumulated VVS by paying gas fees;
• ROI calculator: Allows users to calculate their ROI by entering the stake amount, time frame, and compounding duration. (accessible after Pioneer Farming Mode).

Glitter Mining

The “Glitter Mine” allows non-LP users to stake VVS tokens and get VVS tokens or other partner tokens as rewards. In addition to the View, Stake, Claim, and ROI calculator features, users can also use auto-compounding, which allows users to activate the auto-compounding of staked VVS tokens for each user in the Auto VVS pool in exchange for VVS tokens. 

Initial Gem Offerings (IGOs)

Users can benefit from larger rewards and early access to Cronos ecosystem’s new projects through the VVS Initial Gem Offerings. They can buy the new projects’ tokens using VVS-CRO LP tokens by participating in one of the two sale options: basic sale or unlimited sale. Let’s explore their characteristics.

Basic Sale

• Users can commit VVS-CRO tokens up to a maximum determined amount (differs for each project, e.g., $100, $500 worth)
• No participation fees
• If there’s an overflow in the subscription, any unspent LP token will be returned.

Unlimited Sale

• No cap on the amount of VVS-CRO to commit
• The participation fee will decline based on the percentage of overflow. The initial participation fee is set at 1%.
• If there’s an overflow in the subscription, any unspent LP token will be returned.

Analytics

Analytics allows users to access the overall VVS Finance protocol’s per-token/pair data, including liquidity, trading volume, etc. Users can access the VVS protocol via a dedicated web interface and connect using the Crypto.com Wallet Extension or any mobile wallet that supports WalletConnect (available on the Crypto.com DeFi Wallet).

VVS Finance intends to provide native wallet integration with popular wallets and API access in the future.

Why Is VVS Finance Popular?

VVS Finance intends to simplify DeFi by offering a user-friendly interface, seamless swaps, liquidity pools, staking, fast and cheap transactions, etc.

A cryptocurrency project’s health is also evaluated according to the following criteria:

• Substantial market cap: In the first few months since its launch, VVS Finance’s market cap increased from $20 to $170 million and has mirrored the general market trend since then. 
• Reasonable trading volume: VVS Finance’s trading volume has primarily stayed within 5 and 20% of its market capitalization range. 
• Price action: The protocol’s VVS token’s price action is approximately as volatile as you would anticipate from a new DEX project and a new chain, but without strange pumps.

What Is VVS Token?

VVS is the VVS Finance protocol’s utility, reward, and governance token. The VVS token was created on the Cronos blockchain’s CRC-20 architecture. VVS adopts an emission model in which 50 trillion VVS will be created in the first year and half of that every year after that  (for example, 25 trillion in the second year), and the per-block emission is based on the chain’s technological design.

VVS tokenomics is as follows:

• 30% to farms and liquidity mining
• 23% to the team
• 15% to the community wallet for future initiatives
• 13.5% for network security and maintenance
• 13.5% for ecosystem development
• 2.5% to traders and referrers
• 2.5% to market makers.

In addition to the Cronos blockchain’s core VVS and CRO tokens, the protocol also supports USDT, USDC, SHIB, ATOM, and other tokens.

The VVS Finance team makes the current governance decisions in consultation with the community feedback; however, to fully decentralize the protocol, VVS Finance intends to hand the project over to VVS token holders gradually.

Make sure to track your crypto, NFT, and DeFi investments with CoinStats, the top portfolio tracker on the market.

How Many VVS Tokens Are in Circulation?

VVS’s total circulating supply is 2.2 trillion. Its total supply is over 36 trillion, increasing to 100 trillion over ten years through its emissions schedule. 

How Does VVS Finance Work?

VVS Finance focuses on tested and audited protocols. It provides a lucrative creative program supported by the native VVS Finance token (VVS). 

The protocol offers liquidity pools, each consisting of two tokens. Tokens are added to the pool by liquidity providers and then traded amongst traders.

The methodology is based on a formula for producing a consistent product. To clarify, after a swap is carried out, the sum of the quantities of both tokens in a pool stays the same. Additionally, the price slippage from the swap may differ according to the total number and distribution of tokens in the pool.

The stakeholders can profit from VVS Finance’s underlying mechanisms in the following ways:

• Liquidity providers (LPs): LPs receive 2/3 of the individual pools’ transaction fees. You will get VVS incentives for staking valid LP tokens under the “Crystal Farm” tab.
• VVS stakers: Stakers are rewarded in  VVS and partner tokens for staking VVS on the “Glitter Mine” page.
• Trading incentives: Rewards for trading tokens on VVS Finance are promised to users who swap tokens on the platform but have yet to be made public. Referral program: Users recommending others to trade on VVS Finance will receive benefits that have yet to be disclosed.

A sizable amount of the VVS supply is set aside for future community projects to ensure benefits for the  VVS Finance contributors and users.

Bottom Line

VVS Finance is built on the Cronos blockchain that facilitates cheap and fast transactions and leverages proven and audited protocols. It also provides a rewarding incentive scheme powered by the VVS Finance token.

The VVS Finance price prediction anticipated steady growth, drawing inference from its market capitalization moving from $20 to $170 million and then to $350 million in early April. If VVS Finance continues its steady growth, the protocol could retain its large market share on the Cronos blockchain.

People always want to trade at the best price in a market as volatile as cryptocurrency. Choosing the best alternative after manually comparing the pricing provided by other DEXs is one approach to achieve this. However, it takes a long time to complete that process.

In this article, let’s learn more about Matcha and its financial prospects.

What Is Matcha Crypto?

As a decentralized exchange built on Ethereum, Matcha aggregates liquidity from exchange networks like Ox Mesh, Kyber, Uniswap, Curve, and Oasis to offer customers the best pricing when trading tokens.

Many decentralized exchanges run on Ethereum, and Matcha stands out as having DEX’s most straightforward user interface.

Matcha crypto trading platform powered by 0x Labs and utilizes the Ethereum smart contract infrastructure to enable tokens peer-to-peer exchanges for users. Since it’s a DEX, users maintain full custody of their tokens during every trading process. 

To maximize the value users get from every deal, Matcha collects the best rates from an increasing number of liquidity sources. Matcha never retains the difference between quoted and realized prices, in contrast to certain other DEX aggregators, and transparently exposes all fees and costs related to trades.

There are no platform fees for trades at this time on Matcha. The transaction fee for each trade you make on Matcha is composed of an Ethereum gas fee and a 0x protocol fee (if 0x liquidity is used). Your total order fee will vary depending on which decentralized exchanges are used to generate the liquidity. For instance, the base price for each trade on most DEXs is 0.3%.

Who Are the Founders of Matcha Crypto?

Matcha is a product of 0x Labs. After developing the 0x protocol and assisting others in creating fantastic DeFi products for a few years, 0x Labs had a ton of fresh ideas for facilitating the entry of more individuals into interesting new markets. With this insight, 0x created Matcha, a straightforward decentralized crypto exchange made for everyone, to reinvent the exchange experience and lay the groundwork for onboarding the upcoming wave of cryptocurrency traders.

All types of value will be tokenized on open blockchains, according to 0x Labs’ vision. This includes fiat money, stocks, bonds, commodities, debt instruments, real estate, video game items, digital collectibles, software licenses, reputation, and a wide range of other things.

Why Was Matcha Crypto Created?

The continuous emergence of Automated Market Makers (AMMs) is one of the most revolutionary changes in the current decentralized financial landscape. However, due to the abundance of AMMs, aggregators like Matcha have become necessary.

At the moment, AMMs are the most widely used decentralized exchange. They trade token pairs using algorithms rather than order books and utilize smart contracts to build liquidity pools. Examples include Balancer, Uniswap, and Curve, all Ethereum-based.

There is often a price differential between the many decentralized exchanges at any given time since AMMs use liquidity pools to determine trading prices. Aggregators like Matcha have become very helpful because they combine all the networks to determine the best rate for the user.

Matcha was built to help users save money from multiple decentralized exchanges, find the best prices, and easily trade tokens peer-to-peer. 

Why Is Matcha Popular?

The homepage has a search area and token shortcuts, which is the first thing you’ll notice. On some exchanges, accessing the markets entails selecting the desired assets from two different dropdown boxes. Any token or combination you’re looking for may be easily entered using Matcha search, allowing you to enter the market and start trading immediately.

At some point, you’ll be able to trade thousands of possible pair combinations over hundreds of different assets. Therefore, Matcha optimized the platform so that traders may identify and move to any markets they’re interested in as quickly as possible with fewer interactions.

Token Shortcuts and a Search Field

To begin trading on other exchanges, users must navigate the trading website and select one or more tokens from two dropdown menus. However, the default search box on Matcha’s home page allows users to enter the assets they wish to trade and immediately be taken to the relevant trading market.

User-Friendly Language

For newcomers to the DeFi landscape, technical words while using DeFi services can be a barrier. Matcha recognizes this and converts each technical term into a user-friendly language. Users benefit from a better trading experience, avoiding any losses brought on by misunderstandings.

What Is Matcha Token?

At the time of writing, it has yet to be confirmed that Matcha has released a token. Although, there are rumors about a possible airdrop.

How Does Matcha Crypto Work?

We must examine three of Matcha’s internal ingredients to understand how Matcha works. Matcha searches all decentralized exchange (DEX) networks and individual market makers first to determine what price is best for you at that precise moment. Matcha uses intelligent order routing to ensure your trade is carried out quickly and effectively after the best price has been determined. Finally, we leverage meta transactions and gas tokens to further lower transaction costs for traders, saving you money on Ethereum gas fees.

Matcha collects liquidity from increasing sources, including 0x, Uniswap, Balancer, Curve, Kyber, Oasis, and others, in contrast to other exchanges that only employ one source of liquidity. Matcha gathers pricing information from all liquidity sources at the time of your trade, much like a media aggregator would (for instance, Google News or HuffPost for news, and MetaCritic or Rotten Tomatoes for reviews). 

To give you the best price/least amount of slippage, Matcha divides your transaction among various sources of liquidity via an automated procedure known as “smart order routing.” Larger trades benefit the most from smart order routing, where a single source is unlikely to provide you with the best value. 

DEX Aggregation & Smart Order Routing

To find the most affordable pricing, Matcha combines all of these networks. As soon as the optimal rate is found, Matcha’s order routing algorithm automatically distributes transactions throughout these several DEXs to maximize the overall return for traders. Smart order routing is the name of this procedure.

To help travelers find the greatest offers, Matcha goes one step further by executing a transaction instantly after the best price is identified, relieving customers of the burden of worrying about price shopping when they wish to trade.

Meta Transactions & Gas Tokens

For traders to trade without being concerned about Ethereum network congestion, 0x Labs has been experimenting with a number of various techniques to lower fees. Meta transactions, commonly referred to as gas-less deals are the first.

Meta transactions make it possible for traders to communicate with Ethereum without paying gas fees, which results in a seamless trading experience since customers no longer need to comprehend how blockchains operate or the workings of the fee market. To help traders pay their gas fees, Matcha can sign and authenticate transactions on their behalf.

The use of gas tokens, which enables Matcha to harvest tokens and lock in low gas prices to be used when gas prices rise, has also been investigated by 0x Labs. Matcha does not apply these methods to every deal — it is important to keep this in mind.

Is Trading on Matcha Safe?

It is quite safe to trade on Matcha. The 0x v4 smart contracts Matcha employs have undergone auditing by ConsenSys Diligence and comprehensive testing by 0x Labs. 

Additionally, when you do a deal on a decentralized exchange like Matcha, as opposed to a centralized exchange, where your tokens may be mismanaged or lost, you maintain full custody of your tokens throughout the whole trading process.

Bottom Line

Matcha makes the process simple, even if decentralized finance can be intimidating for some individuals, especially when trying to ensure you’re receiving the best bargain possible. Finding the best trading price on Ethereum is now achievable with just a few clicks, thanks to Matcha’s integration of the top decentralized exchanges on one straightforward interface.

Matcha wants its users to always feel knowledgeable and in charge when using the platform. In addition to protecting you and your money, Matcha ensures full transparency about fees and the current state of the market.

Nowadays, being connected and immersed in the digital world is part of everyday life. From hours of trawling through the internet, watching cat posts on Instagram or Ask Me Anything (AMA) Videos on YouTube, and stalking well-known celebrities’ Facebook or Twitter accounts, we’re all living our lives behind a screen.  However, whilst the internet helps us stay connected with friends, make money online, or enjoy our free time, sometimes we genuinely want to step away from the screen of our mobile phone or iPad for a little bit of digital detoxing, helping us pursue our life goals, enjoy our relationships, and much more. Moreover, we often face lengthy app interruptions or internet connection problems forcing us to re-imagine life without our smartphones or other tech devices.

So, the next time you’re faced with the impossibility of staying productive when dealing with these difficulties or you have no clue how to kill time when your Wi Fi is down, don’t worry or feel lost, instead check out our backup plan for staying on top of your game when your favorite apps go down.

So without further delay, let’s look into fun things to do on your phone or other devices while waiting for the Internet connection to be back!

1. Read Articles Offline

If you enjoy reading articles, you can prepare by installing Pocket, which allows you to save your favorite articles, tweets, recipes, etc., to read later. While coming across an item on your smartphone that you might want to read later, select Pocket from the share option and store it. Additionally, you can use the app’s Discover feature to access a curated selection of articles depending on your interest. Download Pocket’s browser extension if you’re working on a PC.

Newsstand app, available for both iOS and Android, is another good app for downloading newspapers and magazines, which you can read when you don’t have an internet connection. It’s a single place where you can keep your free and paid subscriptions. Moreover, it saves entire publications and downloads new content when you have internet for offline reading later.

2. Go for a Walk

Going for a long walk may sound obvious, but it’s basically one of the simplest (and cheapest) things you can do when you want to give up your mobile phone, computer, and other devices for a brief time. Getting outside for some fresh air, whether it’s a leisurely stroll around your neighborhood park or a fast walk to a friend’s house nearby, will be helpful for letting go of the stress that stems from constant connectivity. Moreover, you can go for a walk with your mom or friend and take advantage of real-life social interactions while simply talking or discussing ideas with them. Some other great digital detox ideas are to play with your dog in the nearby park or go for a bike ride to get lost in nature or the city.

3. Make Some Phone Calls

Consider all the calls you need to make but haven’t had the time to prioritize. Do you need to book a haircut? A doctor’s visit? A veterinary examination for your dog? When was the last time you called your parents? Surprise your friend with a call and talk about your next meet-up or lend an ear and listen to what they have to say instead of DM-ing or tweeting them. If your internet is down, but you still have cell service, take a few minutes to cross a couple of these numbers off your list.

4. Make a To-Do List

You may be disconnected right now, but your internet connection will, of course, be restored sooner or later. So, this is a perfect moment to grab a pen and a piece of paper and make a to-do list of tasks to complete, including effectively organizing and prioritizing the tasks. You can also plan a get-together to never forget, such as a party with friends or a picnic or a meal plan for the week.

Alternatively, several to-do-list applications, such as Google Calendar and Evernote, can still be used while you are offline. You simply need to be logged in to Evernote before you lose your internet connection, and whatever you enter while offline will be synchronized the next time you connect.

Any.do is another task management app that provides the best tools for perfectly organizing to-do lists and managing your calendar. It has a great offline productivity app that makes any tasks you’ve already synced with your phone or computer available, and any changes you make will be uploaded to your account whenever you next have a connection. So make it a point to take control of your to-dos by keeping track of them.

5. Listen to Podcasts Offline

Podcasts are one of the most popular ways to get information or entertainment these days, as you can listen to them in the car, at the gym, etc. However, if you don’t have an internet connection, you can still listen to podcast episodes; it just requires a little planning.

Individual podcast episodes can be downloaded (or “saved”) to your iOS device using Apple’s Podcasts app (which you can get through iTunes if it isn’t already on your device). This allows you to listen to podcasts even when you’re offline. So, to prepare for your commute or other times with no access to the internet, we recommend downloading a large number of podcast episodes in advance.

To store an episode on the Podcast app, follow these steps: Find your podcast episode, click the three dots to the right of the title, and select “Save episode.” The download may take a few minutes to complete. Once the podcast is downloaded, you can listen to it online or offline from the “My Podcasts” tab.

If you have an Android smartphone, you can listen to podcasts both online and offline with the Stitcher app. To listen to previously downloaded podcast episodes without an internet connection, use the “offline mode.” You can either download these episodes individually or configure Stitcher to download new episodes of podcasts you’re subscribed to whenever you have internet access.

6. Take a Break

Why not take a break and relax when you don’t have internet access? Taking breaks has been proven to increase productivity by enhancing alertness, focus, and work speed.

Take a stroll, nap, meditate, spend a little time reading, or meet a coworker for coffee and speak about something other than work. We propose the free software Headspace (available for iOS and Android), which will walk you through the fundamentals of meditation in just 10 minutes.

During detoxing from digital devices, you can also cook new things, write a blog post on paper, practice your forgotten skills, learn a new language, or how to play the piano, etc.

7. Hold an Unscheduled Staff Meeting

Did your internet go down when everyone was at work? If you enjoy engaging with other people but want to keep things work-focused, an internet outage might be the ideal moment to gather the team to brainstorm, check up on the progress of everyone’s projects, or discuss scheduling or concerns that you might not usually have time to catch up on.

8. Download Apps to Watch Offline

When it comes to entertainment, video games aren’t your only option. You can also download apps to your phones for practically every streaming service available to watch your favorite shows wherever you are. Some services will allow you to download episodes of your favorite series to your device so you can watch them without internet connectivity or after exhausting your data plan.

9. Write Thank-You Notes

While you’re disconnected, why not be thankful for all the beautiful things in your life or handwrite a few thank-you cards to folks who’ve made a difference in your life?

Even if you don’t have any stationery on hand, you can write down the thank-you notes on a piece of paper to transcribe into a finer piece of stationery once you get it. Here’s a Hallmark thank-you note template to get you started.

10. Organize Your Space

What better opportunity than now to finally get that cluttered drawer under control or look through old stuff and donate old clothes to charity? Keep your mind (and hands) busy for at least an hour by cleaning out and arranging your room/drawer, kitchen, etc.

No matter how well-organized you are, chances are you still have a mountain of outdated documents cluttering up your home office/office desk. Pull out your paper shredder and help yourself by decluttering your desk (and mind). Unsubscribe from mailing lists to free yourself from the burden of deleting emails, update your contact list and delete listings you don’t ever contact, connect your email accounts to send and receive email from your smartphone, etc.

11. Make a Playlist

While you may not be able to access the songs individually when you’re offline, depending on how you listen to music, you can still create a playlist to enjoy when the internet is down. If you use iTunes and have already downloaded the music you wish to listen to, you can create a new playlist at any time, whether you’re connected or not. Spotify’s “offline mode” function available to premium customers enables you to create and listen to playlists offline; however, you must connect to the internet at least once every thirty days to save your offline music preferences.

Are you ready to take control of your crypto investments and make the most out of them, even during the crypto winter? Cryptocurrency investing can be stressful during market downturns, but understanding tax-loss harvesting may help you reach the next…

More than 10 years have passed since the introduction of Bitcoin. During these years the segmented cyberpunk and cryptographic movements evolved into the Crypto community. Nowadays, the Crypto community has a prophet – Satoshi Nakamoto – symbols and slang – a specific language generated by crypto supporters.

Words such as mooning, shilling, funding, “pump and dump”, FOMO, and DYOR –  the list goes on  – are commonly used as the slang of crypto enthusiasts. However, HODL is by far the most common of these terms and one to which almost all crypto traders can relate.

HODL is a term used by crypto investors which means they’re holding Bitcoin or other digital assets for an extended period, focused on the long-term outlook and regardless of the short-term market fluctuations. If you’re wondering whether HODL is a rewarding investment strategy helping you navigate extreme fluctuations in the crypto market, we’ve got you covered. This article will give you an in-depth understanding of the HODL meaning and answer such questions as “what does HODL mean” and whether you should use it as an alternative to profiting from short-term trades.

Let’s get right to it!

What Is HODL?

HODL originated from an almost decade-old typing mistake. On 18th December 2013, a user with the name “GameKyuubi” posted on the Bitcointalk online forum titled “I AM HODLING.” In the crypto forum, GameKyuubi described what a bad trader he was and how he planned to “hold” his Bitcoin (BTC) investments. He concluded that the best course was to hold since “You only sell in a bear market if you are a good day trader or an illusioned noob. The people inbetween hold. In a zero-sum game such as this, traders can only take your money if you sell.” 

This four-letter typo embodies the idea that blockchain and crypto will transform society and unlock huge resources for the people who continue to trust in crypto even during the moments of difficulties. The term “HODL” now jumps up whenever the crypto market drains and sends the message to holders not to sell.

In no time, the HODL meme spread among crypto traders throughout crypto markets. The HODL community encourages other investors not to sell their crypto when prices rise or even when crypto prices fall during a bear market. As the Bitcoin price in 2013 was notoriously volatile, Bitcoin investors found the buy-and-hold strategy rewarding. New investors are the ones most likely to profit from this type of crypto strategy, giving them enough time to explore the crypto industry.

Crypto enthusiasts have taken what was clearly a misspelling of the word “holding” and described it as an acronym for “hold on for dear life,” referring to the cryptocurrency strategy of not selling your digital assets even amid market volatility. While this is not how the term originated, this explanation expresses the real investment strategy HODL represents.

It’s also worth noting that HODLing works the same way it has traditionally worked for investing in the stock market when the guideline is to HODL stocks for at least five years to benefit from your investments.

Is HODL A Good Investing Strategy?

Now that we have a good idea of what HODL means let’s discuss whether it’s the right approach for you. Investing in digital currencies is risky due to their price volatility, and the risk becomes even greater because the crypto market is unregulated. In this sense, HODLing crypto has proven to be very profitable for long-term gains in popular cryptocurrency tokens such as BTC, ETH, DOGE, etc.

However, this isn’t the case for most cryptos with no long-term prospects. No matter how hard crypto investors might hold on for the dear life of these tokens, they might still end up becoming worthless, generating a loss for investors who employed the HODL strategy.

Additionally, many crypto investors apply the HODL strategy toward their trades because they believe that blockchain technology and blockchain assets will eventually replace fiat money — and that HODLing their assets will lead to value appreciation in the long term.

As you can see, HODLing crypto is not a one size fits all investing strategy, and you must make a well-informed decision about which tokens to invest in and whether to HODL tokens or sell them when the price increases.

When Should Crypto Investors Use HODL Strategy?

Whether HODLing is a promising approach for you depends on your experience and goals as an investor. If you’re a day trader hoping to profit from the rapid price swings in short-term trades, then HODLing will mean missing the opportunities to benefit from short-term price fluctuations in the crypto market.

However, we’ll suggest HODLing if you wish to build wealth in the long term, given you choose the right cryptocurrency tokens for long-term investment. Moreover, you can HODL based on the belief in the cryptocurrency’s mass adoption.

HODLing also has several benefits if you’re new to the cryptocurrency market. It will save you from the risks of short-term investing strategies that might make money faster but at the cost of a steep learning curve. It will also help you make money from your crypto investments while taking your time to get trading experience.

The disadvantage of HODL is the amount of time needed to make a profit and the fact that the investors miss the opportunities to benefit from short-term price fluctuations in the crypto market.

What Is the Best Crypto Investment Strategy?

The high volatility of cryptocurrency prices and the recent collapses of LUNA, FTX, etc. make crypto investment a risky endeavor, so what investment strategy is best for cryptocurrency investors to adopt?

The answer is investing in a diversified portfolio to mitigate risks and reduce losses. Once you build your portfolio, you can lend your crypto to a liquidity pool to earn more tokens, earn rewards through staking, etc. HODLing will also give you time to get investing experience required for short-term trading. And, in case you decide to simply HODL, thoroughly research the token you’re investing in and ensure it has long-term value.

Crypto Acronyms You Need to Know

Here are some of the acronyms widely used by the crypto community and associated with HODLing:

FUD: Fear, Uncertainty, and Doubt. HODL investing can help investors control the emotions associated with FUD.

FOMO: Fear Of Missing Out refers to people jumping into trades when a crypto price is at its highest. HODL investing can help investors control the emotions associated with FOMO.

Diamond Hands: Extreme form of HODLing.

Paper Hands: Refers to people without diamond hands.

Final Thoughts

HODL strategy helps crypto investors to escape from the crypto market’s high volatility and not move with the market sentiment.

In the cryptocurrency market, prices alone can be a misleading indicator for evaluating a project’s true potential and value. Cryptocurrency prices may rise and fall dramatically based on factors such as changes in circulating supply, public enthusiasm, etc. This is why investors use market capitalization as a crucial measure for evaluating and ranking assets and determining their growth potential. Larger market caps generally indicate more investors, relatively more stability, and more influence in the crypto space. 

This article will delve into the question of “what is crypto market cap” and how to use it to compare the total value of one cryptocurrency with another to make more informed investment decisions.

Let’s get right to it!

What Is Crypto Market Cap?

Cryptocurrency market cap measures the market value of a cryptocurrency and is determined by the current market price of a token or coin multiplied by its circulating supply. Investors can rely on the market cap as a reliable and crucial piece of data that can significantly increase their chances of success.

Market cap indicates data on any given cryptocurrency, including its market position and dominance compared to other cryptocurrencies. That’s why it’s considered a more precise metric than the cryptocurrency price and is used when ranking cryptocurrencies.

https://youtu.be/ziQwtcNUIaU

High market cap cryptocurrencies are more reliable and give you more confidence, while low market cap coins are seen as speculative and risky, yet potentially lucrative projects.

Pro-tip: It’s crucial to differentiate whether one uses FDV or circulating supply as a metric. FDV, or a fully diluted market cap, is calculated based on the total number of coins, not just the ones in circulation.

Another alternative method includes the maximum supply, where market capitalization is calculated by multiplying an asset’s current price by the maximum number of coins that could ever exist. However, not only a higher circulating supply does affect the price of cryptocurrencies, but also some coins have no upper limit.

Factors Affecting the Market Cap

The factors that affect market capitalization are supply and price. 

Supply

The cryptocurrency market cap is affected by the supply of the given cryptocurrency. When demand increases faster than supply, the price increases, potentially impacting its overall market cap. Bitcoin, for example, has a fixed supply of 21 million bitcoins – its supply is scarce, and this scarcity drives its value up. Others, like Ethereum, don’t have a fixed total supply, but some ETH is burnt or sent to an unrecoverable address on the blockchain to prevent the circulating supply from growing too large. As a result, the supply of Ethereum in circulation is now declining. Some other cryptocurrencies created by companies have an unlocking schedule. To create scarcity and maintain value, only a portion of their total supply goes into circulation at the time of their initial coin offering, and the rest will unlock over a set period.

Price

Even when a small number of coins is in circulation for a given cryptocurrency, its market cap will rise significantly if the price is high. A cryptocurrency’s high price, even with a low circulating supply, leads to a large market cap. Conversely, if a cryptocurrency has a high circulating supply but its price is low, it may not have a large market cap.

How to Use Crypto Market Cap as an Investment Tool?

Now that you know everything about the crypto market cap let’s understand how to use it to your advantage to make well-informed investment decisions. 

Cryptocurrency Market Cap Classification

If you’re looking to invest in a relatively stable cryptocurrency, then select the ones with the highest market cap. We can break down cryptocurrency market cap sizes into three categories:

Large-Cap Cryptocurrencies

Digital currencies with a market cap of more than USD 10 billion are considered large-cap cryptocurrencies. These are considered low-risk investments because they’ve demonstrated sustainable growth and have higher liquidity. Their prices are also less likely to rise or fall drastically. Some examples are BTC, ETH, USDT, BNB, USD Coin, etc. 

Mid-Cap Cryptocurrencies

These are cryptocurrencies with market caps between USD 1 to 10 billion. The medium-cap segment is considered high-risk and high-reward due to its untapped potential. Some examples include Polygon (MATIC), Internet Computer (ICP), Axie Infinity (AXS), Stellar Lumen (XLM), VeChain (VET), Dogecoin (DOGE), Shiba Inu (SHIB), Litecoin (LTC).

Small-cap cryptocurrencies

These are cryptocurrencies with market caps of less than USD 1 billion. While these projects carry the highest levels of risk, they can also be extremely rewarding. eCash (XEC), NEO, USDD, Bitcoin Gold (BITG), and  Nord Finance (NORD) are some of the exciting small-cap cryptocurrencies.

Crypto Weighted Market Cap Strategy

A weighted market cap strategy means you put a proportional investment into each asset based on market cap. So, for example, to invest $100 in the two biggest cryptocurrencies, Bitcoin and Ethereum, you must take the total market capitalizations of both, then divide out the percentages each crypto holds in that total (71% Bitcoin and 29% Ethereum). Accordingly, you’d invest about $71 in Bitcoin and $29 in Ethereum.

Final Thoughts

A crypto market cap is an important metric that indicates the asset’s market value and the investors’ trust in the project. Along with such basic parameters as the cryptocurrency’s price, circulating supply, hashrate, and trading volume, a market cap enables you to assess the cryptocurrency’s performance before investing.

Please compare the total value of cryptocurrencies, the market trends, a cryptocurrency’s stability, and your own financial situation when weighing the risks of any investment. Cryptocurrency is a highly volatile market sensitive to secondary activity, do your independent research, obtain your own advice, and practice due diligence before interacting with smart contracts.

You can find the current price, charts, price statistics, market cap, total supply, max supply, circulating supply, 24h trading volume, etc., of different cryptocurrencies, including new coins, and get updates in real-time on CoinStats, one of the best crypto platforms around.

You’re welcome to visit our CoinStats blog to get a broader perspective on decentralized finance and how it seeks to empower people. You can also read our articles, such as What Is DeFi, explore our in-depth buying and staking guides on various cryptocurrencies, such as What Is DeFi Staking, How to Stake MATIC, How to Stake Ethereum, How to Buy Cryptocurrency, and learn more about wallets and exchanges, portfolio trackers, etc.                                                  

The crypto industry is continuously gaining popularity due to such notable advantages over traditional money as decentralization, privacy, security, accessibility, fast transaction speed, low charges, and more. You might be engaging with cryptocurrencies as a vehicle for exchange or a store of value; or benefiting from DeFi’s transparent, secure, and inclusive financial services. Whether you’re receiving cryptocurrency as payment, exchanging different cryptocurrencies, selling assets, staking, trading, and mining crypto to make life-changing money, achieve financial freedom, and earn passive income, or simply collecting NFTs, understanding your crypto taxes is paramount for avoiding an IRS audit and substantial fines related to tax fraud. The taxation policies differ depending on your location, the type of digital assets you’re holding, your profit and losses, etc. 

For example, U.S. law deems cryptocurrencies as capital assets subject to capital gains and capital losses, just like stocks or bonds.

So how much is crypto taxed? If you’re wondering which transaction is considered a taxable event and trying to figure out the complex tax landscape marked by digital currencies, we’ve got you covered. This article will tell you everything you need to know about your crypto taxes, how your gains and losses in crypto transactions affect your taxes and demonstrate how to navigate cryptocurrency tax implications successfully.

Let’s get right to it!

What Are Crypto Taxes?

The crypto economy achieved a market capitalization of more than US $3 trillion in 2021, i.e., more significant than Microsoft’s market valuation at $2.52 trillion and Apple’s $2.47 trillion market cap. DeFi introduces decentralized low-cost, high-speed transactions, but it also makes it difficult for tax authorities to come to grips with the exponential growth in digital assets. While precise guidelines on crypto taxes on the purchase, ownership, and sale vary widely between jurisdictions, in the U.S., the IRS treats virtual currencies as property and classifies cryptocurrency transactions as taxable by law. Therefore, users must report any taxable event, with failure to do so resulting in penalties.

You owe taxes when you sell, trade, exchange virtual currency, or make a profit through crypto in any way. The different types of taxable events for cryptocurrency transactions are purchasing goods or services using crypto, trading different kinds of cryptocurrency, or selling crypto for fiat currency. Additionally, if you send crypto to your friends, family, or loved ones as a gift, you’ll need to file a gift tax return if it exceeds $15,000 per recipient. However, these are only considered taxable income if your crypto’s value has increased. To determine if you must pay taxes, you need the cost basis, i.e., the total amount paid to purchase your crypto, and compare it to the crypto’s sales price. If you recognize a loss, you can deduct that to lower your taxable income by a maximum of $3,000, with additional losses to be carried over to future years. You can also offset your capital losses against your capital gains to reduce your overall tax bill.

Crypto tax rates depend on your income, tax filing status, and the length of time you owned your crypto before selling it. If you held it for 365 days or less, then you generally pay short-term capital gains taxes, which are equal to income taxes, i.e., the same tax rates you pay on all other income – 10% to 37% for the 2022-2023 tax filing season, depending on your income level. If you have owned it for longer, you pay less, i.e., long-term capital gains taxes ranging from 0% to 20%, depending on your income level.

These taxes apply even if you use crypto to make purchases. Learn more with this IRS worksheet and the IRS website for the latest information about virtual currency gains.

Since 2021, IRS Form 1040 asks recipients if they have received, sold, exchanged, or disposed of another financial interest through virtual currency at any point throughout the year. It has also been clarified to specify only taxable events, including receiving cryptocurrency as payment, airdrops, exchanging different cryptocurrencies, selling assets, and earning from mining and staking. It’s important to note that if you’re self-employed and running a crypto mining business, you’ll also need to pay Self Employment Tax to cover your Medicare and social security contributions.

What Is Crypto Income?

Crypto income is taxed as ordinary income at its fair market value on the date the taxpayer receives it. You must keep records of all your cryptocurrency transactions, including how much you paid for crypto, how long you held it, and how much you sold it for, as well as receipts for each transaction and note the fair market value of the cryptocurrency when it was used to get an idea of how much tax you owe. While buying cryptocurrency isn’t a taxable event, selling it is considered a taxable transaction. Here are the most common examples of what is considered crypto income:

• Mining or staking rewards. 
• I am receiving crypto as a mode of payment for goods or services. 
• Airdrops
• Earning through play-to-earn games.
• Financial interest earned through lending pools. 
• Earning through liquidity pools, etc. 

Crypto Transactions That Will Not Incur a Tax Liability

While you must pay taxes on personal income, capital gains, and business income from crypto, here are a few crypto transactions that will not incur a tax liability:

Buying Cryptocurrency Using Fiat Currency

Purchasing virtual currency using fiat currency and keeping it within the crypto exchange doesn’t incur a tax liability. You don’t have to file crypto taxes based on the guidance listed on your Form 1040 tax return. Unless you sell or trade the virtual currency, no cryptocurrency taxes must be paid.

Moreover, even if the virtual currency you’re hodling goes up in value, you’re not liable to pay taxes on your crypto gains unless you sell it for fiat currency or trade it for another crypto. 

Transferring Crypto to Another Wallet

Hodling your digital asset in custodial wallets provided by crypto exchanges or non-custodial wallets, like hardware or software wallets, is not taxed. Moreover, you can transfer your crypto between the wallets you own without worrying about paying taxes on them.

Donating Cryptocurrency

If you choose to donate a crypto asset to a qualified charity or non-profit organization, then the transaction does not incur a tax. You must simply record the transaction at the fair market value of the coins at the time of the donation. However, the donation can also be tax deductible, so it’s essential to take note of your donations’ cost basis properly. 

Gifting or Receiving Crypto as a Gift

In 2021 alone, according to a survey by BlockFi, one in 10 people received crypto as a gift during the holiday season. There is no tax on cryptocurrency gifts under $15,000. If you decide to sell a crypto gift valued over $15,000, you will use the same cost basis as the person who originally purchased it.

Capital Gains Tax

Capital gains is a tax on the profit made from buying and selling property or assets like stocks, and real estate, including crypto. A capital gain occurs if you sell a cryptocurrency for more than your initial investment. Capital gains taxes are considered short-term if held for less than a year and long-term gain if held for more than a year. Short-term capital gain tax rates correspond to an individual’s ordinary income tax bracket, while long-term rates also depend on an individual’s filing status and taxable income.

Additionally, you’re taxed on net capital gains, i.e., the difference between gains and losses. 

The type of activity will determine which tax forms you may need. The tax forms include Form 1040, Form 8949, Schedule C, Schedule D, and Schedule SE. If you find it confusing to calculate capital gains on your own, you may use crypto tax software such as CoinTracker or TokenTax to generate crypto tax reports.

Here are cases when you must report cryptocurrency trades on your tax return:

• Trading Cryptocurrencies
  You must pay capital gains tax when you use crypto as a means of exchange, including selling your crypto for fiat currency such as U.S. dollars or swapping crypto for another. You must also pay tax for paying for goods and services with crypto.
• Trading or Minting NFTs
  If you’re creating or minting NFTs, knowing what events are taxable and how they’re taxed is essential. The specific tax implications of an NFT depends on whether you’re an NFT creator or investor and if you’re interacting with NFTs as a hobby or a business. Once you sell an NFT for crypto or swap it for another NFT, that triggers another taxable event. Any royalties you earn for an NFT you created would also be taxed as income.

Short-Term Capital Gains Tax Rates

Short-term capital gains tax rates are given below:

For the year 2022:

Tax Rate	Single	Head of Household	Married filing jointly	Married filing separately
10%	$0 – $10,275	$0 – $14,650	$0 – $20,550	$0 – $10,275
12%	$10,276 – $41,775	$14,651 – $55,900	$20,551 – $83,550	$10,276 – $41,775
22%	$41,776 – $89,075	$55,901 – $89,050	$83,551 – $178,150	$41,776 – $89,075
24%	$89,076 – $170,050	$89,051 – $170,050	$178,151 – $340,100	$89,076 – $170,050
32%	$170,051 – $215,950	$170,051 – $215,950	$340,101 – $431,900	$170,051 – $215,950
35%	$215,951 – $539,900	$215,951 – $539,900	$431,901 – $647,850	$215,951 – $323,925
37%	$539,901+	$539,901+	$647,851+	$323,926+

For the year 2023:

Tax Rate	Single	Head of Household	Married filing jointly	Married filing separately
10%	$0 to $11,000	$0 – $15,700	$0 – $22,000	$0 – $11,000
12%	$11,001 – $44,725	$15,701 – $59,850	$22,001 – $89,450	$11,001 – $44,725
22%	$44,726 – $95,375	$59,851 – $95,350	$89,451 – $190,750	$44,726 – $95,375
24%	$95,376 – $182,100	$95,351 – $182,100	$190,751 – $364,200	$95,376 – $182,100
32%	$182,101 – $231,250	$182,101 – $231,250	$364,201 – $462,500	$182,101 – $231,250
35%	$231,251 – $578,125	$231,251 – $578,100	$462,501 – $693,750	$231,251 – $346,875
37%	$578,126+	$578,101+	$693,751+	$346,876+

You can use the data given above to calculate your short-term capital gains tax. 

Long-term Capital Gains Tax Rates

The tax rates on long-term capital gains are shown in the table down below:

For the year 2022:

Tax Rate	Single	Head of Household	Married filing jointly	Married filing separately
15%	$41,676 – $459,750	$55,801 – $488,500	$83,351 – $517,200	$41,676 – $258,600
20%	$459,750+	$488,500+	$517,200+	$258,600+

For the year 2023:

Tax Rate	Single	Head of Household	Married filing jointly	Married filing separately
15%	$44,626 – $492,300	$59,751 – $523,050	$89,251 – $553,850	$44,626 – $276,900
20%	$492,301+	$523,051+	$553,851+	$276,901+

Using the data given above, you can easily calculate your capital gains and losses and file your federal tax returns.

How To Calculate Cost Basis?

There are multiple ways to calculate the cost basis for your capital asset and use that to figure out your tax liability. If you hold multiple assets, then finding the most suitable cost basis for your holdings will decide whether you end up paying higher taxes or a fair amount. Four cost-basis methods are allowed by the IRS, and you can only use one during one financial year. The methods are as follows:

• FIFO (First In, First Out): The first asset bought is the first asset being sold. 
• LIFO (Last In, First Out): The last asset bought by you is the first one to be sold. 
• HIFO (Highest In First Out): The asset bought at the highest price is sold first.
• Specific Identification (Spec ID): Choosing the assets sold by you along with the complete records. 

Conclusion

The tax season is right around the corner, and it would be wise for you to start filing your taxes for your crypto trades. Remember to include all your capital gains and losses, including the capital loss you might have had during the crypto winter of 2022, to claim a tax deduction. It’s also important to know that you can’t deduct losses for lost or stolen crypto on your return. You can simply write those off and disregard them from your tax calculations.

In summary, cryptocurrency trading is considered a taxable event, and failure to file taxes can attract penalties.

Are you from a country that requires you file crypto taxes? Or even NFT taxes? Don’t fret, we have it all covered.

Crypto tax report generation can be, as the song goes, better, faster, stronger – okay, in this case  easier, faster, and more secure. Luckily for all overwhelmed tax filers, CoinStats has partnered with CoinLedger to bring you effortless crypto tax reporting at a 10% discount.

Let’s go over the why and the how of the process!

Why Is It Easier to Generate Your Taxes on CoinStats? 

Here are a few reasons why you should consider doing your taxes on CoinStats via CoinLedger:

🕒 You will save time on crypto tax reports

Wanna finish your crypto taxes before you finish your coffee? That’s what we thought. Since most CoinStats users have already connected their portfolios to CoinStats, they won’t have to connect APIs anew to generate their tax reports.  And the fastest way to handle your crypto taxes is the best one for sure!

🔒 You do your crypto taxes securely via the best 3rd party provider

We thought that CoinLedger is the perfect partner if we wanna bring you secure & easy tax report generation: Trusted by over 300,000 crypto enthusiasts all around the world, CoinLedger prioritizes simplicity and user-friendliness every step of the way. Plus, both CoinStats and CoinLedger get only read-only access to selected portfolio items, so your transaction data will never be compromised.

🏷️ You’ll get 10% OFF

As a CoinStats user, you get 10% OFF crypto tax report creation. This one’s a bit self-explanatory: We like you so much we have also thrown in a discount 🧡

💰 You can save money on crypto and NFT tax loss harvesting

Have you lost some money on crypto or NFTs this year? Who hasn’t. Although it is quite unpleasant, capital losses come with tax benefits. You can take full advantage of this loophole when you do your crypto taxes with us. 

How to Generate Your Crypto Tax Report With CoinStats?

Follow these steps if you want to generate your tax report on desktop 💻

And here are the instructions if you want to do your crypto taxes on mobile 📱

Note: Make sure you have updated your CoinStats app, otherwise it might not have this new feature. 

Closing Remarks

As crypto gains wider adoption, more and more countries around the world introduce legislation requiring crypto taxes where cryptocurrency is treated like any other digital asset, such as stocks or bonds. Soon enough crypto taxes – or even NFT taxes – will inevitably become the norm. 

Foreseeing this development, we have partnered with #1 crypto tax tool on the market CoinLedger to facilitate tax reporting for all CoinStats users. Stay tuned for more updates because at CoinStats crypto expansion never stops! 

The cryptocurrency industry is an ever-changing one, with new projects and influential figures entering the market with each passing year. The space has developed from just a simple concept into a formidable force in just a few short years. This artic…

Dear CoinStats Community,

I’m writing to invite you to look back at the challenging year of 2022 and find out what you can expect from CoinStats in the next one. Open dialogue helps us uphold the high standards of accountability we’ve previously set and contributes to the betterment of our trusted relationship.

The crypto market lived through turbulent times this year, largely because of macroeconomic factors. Taking into account a number of major implosions, we take pride in the patience, determination, and enthusiasm with which we kept building. 

CoinStats grew and expanded, and our team generated brilliant new ideas despite the temporary setbacks, proving that the way one responds to a challenge is much more important than the challenge itself.

Let’s go over all the new tools we launched in 2022 before we toast to a gainful 2023!

Now we’ll take a closer look at the added toolset.

Brand New Features & Tools in 2022

We worked hard to bring you something new and exciting every quarter, so let’s go over each of them.

CoinStats Earn

CoinStats Rewards

DeFi Tracking

NFT Tracking

On top of these, we made crucial updates to our homepages, essentially building a whole new CoinStats homepage with extended functionality.

Swap 2.0

CoinStats Midas

Buy Crypto on Web

Crypto Gift Cards

Tax Reporting Partnership With CoinLedger

Other Additions

In addition, this year we brought you:

• WalletConnect Functionality
• In-app Stories
• CoinStats GLXY Collection

What’s Next?

https://twitter.com/narek_gevorgyan/status/1609300366021087232

2023 may be the year where decentralized finance has its moment. But even if it’s not and we have to wait yet another year, our long-term goals will remain the same. No matter the weather forecasts and times of bears and bulls, CoinStats is going to continue surprising you with cutting-edge DeFi & NFT features.

Next year, we’ll bring you new data-based opportunities to fine-tune your investing strategy, maximize gains and minimize the technicalities. Forget speculation and get-rich-fast schemes, we’ll continue building tools that will open up new horizons of financial freedom for everyone. 

For us, DeFi is more about the journey than the destination. And we’ll keep moving toward a world where individuals control their financial future. No matter what setbacks institutions and policy-makers create for us, we will continue to fight to reclaim power and create a network of independent and free global transfer of value. 

And we hope that you will be onboard the CoinStats starship when we approach the future we envision. Happy New Year, and Thank You For Everything! 🧡

Let’s talk about Curve Finance, one of the most popular stablecoin-centric DEXs on the market. Read on as we give answers to all your questions.

What is Curve Finance? 

Curve Finance is an automated market maker (AMM) decentralized exchange protocol that swaps stablecoins with low trading fees. Anyone can contribute their assets to various liquidity pools through this decentralized liquidity aggregator while earning a profit from fees in the process.

Curve is a blockchain-based system that aims to make trading easier without using a central order book. Users can lock stablecoins into lending pools and receive CRV tokens in exchange for doing so and also get a share of the trading fees.

Although it has many similar features to Uniswap and Balancer, this AMM platform distinguishes itself by only allowing liquidity pools of similar assets like stablecoins or wrapped versions of related assets like wBTC and tBTC. This approach enables Curve to employ more effective algorithms and offer low fees and low slippage.

AMMs operate without an order book. This can be beneficial for switching between tokens that stay in a similar price range due to the way Curve’s pricing mechanism functions.

This implies that it’s perfect for swapping stablecoins and various tokenized coin forms. As a result, Curve is one of the most acceptable ways to exchange between various tokenized forms of Bitcoin, such as WBTC, renBTC, and sBTC.

Curve Finance supports 10 blockchain networks, including:

1. Ethereum
2. Polygon
3. Fantom
4. Celo
5. Arbitrum
6. Avalanche
7. Kava
8. Glosis
9. Moonbeam
10. Optimism

Let’s have a quick review of how AMMs operate before concentrating on how Curve outperforms other AMMs in the DeFi ecosystem regarding risk and efficiency.

What Is an Automated Market Maker (AMM)?

By leveraging liquidity pools rather than trading directly between buyers and sellers, automated market makers (AMMs) enable the permissionless and automatic trading of digital assets.

A liquidity pool is essentially a shared pool of tokens. Tokens are added to liquidity pools by crypto users, and a formula determines the pricing of the tokens in the pool. By changing the formula, liquidity pools can be more effective for various goals.

Anyone with access to the internet and a few ERC-20 tokens can become a liquidity provider all you have to do is add or deposit liquidity tokens to the pool of an AMM. However, traders who use the liquidity pool pay a fee to the liquidity providers in exchange for their provision of tokens to the pool.

Founders of Curve Finance 

Michael Egorov is the founder and CEO of Curve. Michael Egorov is a Russian scientist who has experience with various cryptocurrency-related businesses.

He co-founded NuCypher, a cryptocurrency company that develops infrastructure and protocols that protect user privacy. In 2015 he was appointed CTO of the company.

Egorov also founded the decentralized lending and banking platform LoanCoin.

As part of the initial launch strategy, Curve’s regular team, which is a member of the Curve CRV allocation structure, will be given tokens on a two-year vesting schedule.

In August 2020, Egorov claimed that he “overreacted” in response to Yearn.Finance’s voting power by locking up a significant amount of CRV tokens, giving himself 71% of governance in the process.

What Is the CRV Token? 

The native utility token of the Curve protocol is called CRV. Its key use cases include governance, LP rewards, increasing yields (as veCRV), and token burns.

The Curve protocol established a decentralized autonomous organization (DAO) in August 2020 to oversee protocol modifications as it began its path toward decentralized governance. Most DAOs are governed by governance tokens, which grant voting privileges to their holders. The CRV token, in this instance, governs the Curve DAO. 

The CRV token can be bought or earned through yield farming—which is depositing assets into a liquidity pool in exchange for token rewards. You obtain the CRV token in addition to fees and interest by supplying DAI to a Curve liquidity pool. Gaining assets and ownership of a strong DeFi protocol are two benefits of yield farming the CRV token, which also boosts the incentives to work as a Curve liquidity provider.

Furthermore, an update to the Curve protocol may be suggested by any party holding a sufficient amount of vote-locked CRV tokens (meaning CRV crypto holders automatically get to participate in the decision-making process of the protocol ). A few examples of updates include shifting fees or where they go, setting up new liquidity pools, and adjusting yield farming rewards.

What Gives Curve (CRV) Tokens Value?

Curve focuses mainly on using AMM for stablecoin trading. Following this mandate, Curve has attracted a lot of interest.

Given that CRV is a governance token and that users are allocated the token based on their commitment to liquidity and length of ownership, the launch of the Curve DAO and its native token resulted in increased profitability.

Curve’s durability has been secured by the rise of DeFi trading, which has resulted in AMMs turning over enormous sums of liquidity and corresponding user gains.

Curve serves people engaged in DeFi activities like yield farming and liquidity mining, as well as those trying to maximize returns and incentivize liquidity providers without taking risks by holding non-volatile stablecoins.

How Many Curve (CRV) Tokens Are in Circulation?

In August 2020, Curve (CRV) and the Curve DAO went live. It serves as a tool for governance, an incentive system, a way to pay fees, and a way for liquidity providers to earn money over the long run.

3.03 billion tokens comprise the whole CRV supply, 62% of which are given to liquidity providers. The remaining money is distributed as follows: Shareholders receive 30%, employees get 3%, and a communal reserve gets 5%. The vesting period for the shareholder and employee allocations is two years.

Since there was no pre-mine for CRV, 750 million tokens should be in circulation a year after launching, thanks to the tokens’ steady unblocking.

According to CoinMarketCap, the current price of the Curve DAO Token is $0.919572 USD. It has a market cap of $488,829,013 USD, a maximum supply of 3,303,030,299 CRV coins, and a circulating supply of 531,583,334 CRV coins.

How Does Curve Finance Work? 

Curve facilitates trading by utilizing the AMM protocol. Automated market makers, or AMMs, use algorithms to price tradable assets in a liquidity pool effectively.

A pricing formula is used to determine the price of assets rather than an order book. Curve’s formula is created primarily to make swaps that take place in a substantially close range easier.

For instance, 1 USDT ought to be equivalent to 1 USDC, which ought to be close to 1 BUSD, and so on. However, there would be some slippage if you want to convert 100 million dollars of USDT to USDC and convert it to BUSD. The formula for Curve is created to reduce this slippage as much as possible.

One thing to remember is that Curve’s formula wouldn’t function properly anymore if they weren’t in the same pricing range. But that’s not something the system has to take into account.

For instance, a price difference between a token and the asset to which it was pinned something outside of Curve would be seriously off. As the system has no power to change circumstances beyond its control, the algorithm works admirably as long as the tokens stay pinned.

Due to this, even huge sizes experience incredibly low slippage. Curve’s spread can effectively compete with some of the best-liquid OTC desks and centralized exchanges.

There are four essential parts to the Curve AMM model:

1. Liquidity Providers, which deposit tokens into the Curve liquidity pools
2. Liquidity Pool, where tokens from liquidity providers are stored in the LP to generate exchange liquidity.
3. Traders that exchange tokens with the liquidity pool to create pressure to buy and sell, influencing token values.
4. AMM Algorithms, which are used to efficiently price tokens in the liquidity pool according to numerous criteria, including the buy and sell pressures exerted by traders.

If you want to track your DeFi investments alongside your crypto and NFTs, check out CoinStats portfolio management app.

Stable Liquidity Pools

In 2020, Curve was introduced as a low-fee AMM decentralized exchange for traders. Curve lets investors avoid more volatile crypto assets while still earning high-interest rates via lending protocols by concentrating on stablecoins. The Curve model is highly conservative compared to other AMM platforms because it steers clear of volatility and speculation in favor of stability.

Liquidity pools on AMMs like Curve always attempt to “buy cheap” and “sell high.” Here’s a reminder of how that rebalancing works, this time with the USD Coin (USDC) and DAI stablecoins tethered to the US dollar. If you were to sell DAI on Curve, the following set of things would happen:

1. The pool is expanded with more DAI.
2. Because there are now more DAI than USDC, the pool is no longer balanced.
3. To encourage equilibrium, the pool offers DAI at a little discount to USDC.
4. The pool rebalances its DAI to USDC ratio.

The pool then tries to return to how it was by offering DAI at a discount.

Compared to other AMM liquidity pools, the Curve pool’s trading between its assets creates the least volatility because their prices are steady relative to one another. Volatility is significant on AMMs like Uniswap or Balancer when liquidity pools might contain any token. By restricting the pools and the types of assets in each pool, the Curve reduces impermanent losses—an AMM situation whereby liquidity providers experience a loss in token value in relation to the market value of that token due to volatility in a liquidity pool

However, impermanent loss isn’t always a bad thing. Users that try to make money by entering and leaving a liquidity pool at the proper time can benefit from volatility and low slippage. Through a strategy known as decentralized finance (DeFi) composability, Curve attracts liquidity providers by trading off the high-risk—and occasionally great reward—aspect of volatility. As a result, you can utilize the money you invested on the Curve platform to get rewards from other DeFi ecosystem platforms.

The values maintained in various assets are not necessarily equal or proportional to one another, as Uniswap or Balancer attempt to do. As a result, Curve can concentrate liquidity close to the ideal price for comparable-priced assets (in a 1:1 ratio) to have liquidity where it is most needed. With those assets, Curve can utilize liquidity considerably more effectively than otherwise.

The like-asset strategy for AMMs is not just applicable to stablecoins. wBTC and renBTC, two tokenized variations of bitcoin (BTC), are also included in Curve’s liquidity pools. Bitcoin is very volatile compared to stablecoins, but the Curve technique still works since tokens in Curve pools need to be stable to other tokens in the same pool. In contrast to wBTC and USDC, which are incompatible, wBTC and renBTC can be included in the same Curve liquidity pool.

Curve Finance Governance

The CRV native token for the Curve platform was released in 2020. 3 billion CRV tokens were produced at this time.

30% of the CRV tokens were set aside for the Curve team and investors, while about 60% were distributed to users who had locked coins on the site. The remaining money was allocated for the project’s personnel and a reserve for charitable causes.

Currently, 2 million CRV tokens are released daily, for a total of 750 million annually. Voting for ideas that establish the Curve system’s regulations will be done with the tokens.

DeFi Composability: Incentivizing Liquidity Providers

Every time a trade is executed on an AMM exchange like Uniswap, fees are earned. Trading fees on Curve are cheaper than Uniswap, but interoperable tokens also let you receive rewards from sources outside of Curve.

For instance, on the Compound platform, DAI is converted into the liquidity token cDAI when it is lent out, and cDAI automatically accrues interest for the holder. A right to withdraw DAI from Compound with interest is conferred upon holders of cDAI. With the ability to deploy cDAI in Curve’s liquidity pools, consumers can get a second layer of utility and potential profit from a given investment.

The advantages of composability in the decentralized finance (DeFi) ecosystem are best demonstrated by using Compound’s cTokens on Curve. Additionally, Curve interfaces with several external DeFi protocols, Compound being just one example. To maximize incentives for liquidity providers, the protocol also interfaces with Yearn Finance and Synthetix.

The Challenges of Curve Finance

Now that the project has undergone an audit, it must be safe to use, right? No matter how many audits smart contracts have, there are always risks associated with using them. Don’t put more money down than you’re willing to lose.

You must consider impermanent loss, just like with any other AMM protocol, before adding liquidity to Curve. 

To increase the profits for the liquidity providers, the liquidity pool may be given to Compound or Yearn Finance. Additionally, users can trade on other smart contracts in addition to Curve because of the wonders of composability. Several of these DeFi protocols become dependent on one another, creating new hazards. If one of them fails, the entire DeFi ecosystem can experience adverse side effects as a result.

Is Curve Finance Safe?

With a wholly non-custodial platform, Curve Finance strives to give consumers the control that cryptocurrency should be about. This implies that your coins are always in your possession and that the platform never assumes custody of them.

Many cryptocurrency users are drawn to earning tokens by using liquidity pools, especially those who prefer to keep their tokens rather than trade them. Users can choose this, and Curve Finance offers a variety of liquidity pools to select the one that best suits their cryptocurrency strategy.

Curve is an excellent choice if you’re a cryptocurrency trader who wants to dive deep into using liquidity pools. Although it has a steeper learning curve, spending the time to go through the documentation reveals an ecosystem that is really about balancing many cryptocurrencies together.

Curve Finance is safe. With complete cost transparency, various liquidity pools to pick from, and a DAO that enables users to participate in the exchange’s future actively, Curve is a DeFi go-to that merits more investigation.

Bottom Line

Although it is a more recent entry into the cryptocurrency world, the Curve Finance platform offers a wealth of advantages for users by allowing for deeper DeFi yield farming, staking, and stablecoin movement.

Due to its preference for consistency and composability above volatility and speculation, Curve is one of the most often-used platforms in DeFi. With the CRV token serving as the governance mechanism and its composable components, making it an interconnected center of the DeFi ecosystem, it is an incredibly decentralized organization that belongs to its people.

Phew, what a year! So, did you sink or swim in 2022? 🤔

January 2022 seems like it was forever ago, and as the year draws to a close, we look back at our investments to draw conclusions and better our strategy. 

Since this initiative was a big success last year, we decided to give you the opportunity to squeeze your 2022 in crypto in one colorful & memetic recap called CoinStats Wrapped as well. 

Let’s take a journey through the ups and downs, the bangers and Ls, the cringe and the based!

2022 was a tough year for crypto, so you may be somewhat reluctant to look back. Here are a few reasons why it’s still a good idea to sum up your year:

• As we prepare to greet 2023, we sit down and reflect on the passing year, and crypto is one part of that assessment. New countries visited and habits improved are great, but don’t forget to include your best coins and best NFT!
• Stats can be quite interesting: Who’d have thought you’d do better than X% of CoinStats users? How did you perform so many transactions or pay so much in fees? Only one way to find out.
• Analysis is the mother of improvement, and maybe there are some crucial changes you need to make to fine-tune your investing strategy. Taking a look back will make it all much more clear!
• We had a lot of fun creating your Wrapped, so chances are high you’ll enjoy unwrapping it. 
• And finally, you’ll have the option to easily share your Wrapped on social media with the hashtag #CoinStatsWrapped, inviting friends and online community to comment on your crypto bro life. You can click on the hashtag snoop on theirs as well 🐸 

Now that we have you in for a ride, let’s go ahead and check your 2022 Wrapped.

How to See CoinStats Wrapped Stats?

Your CoinStats Wrapped will be available on our app for the next 2-3 weeks. Just follow these steps to review your year in crypto:

How Do I Share My CoinStats Wrapped?

We know from last year how much you guys like to screenshot and share specific screens from your Wrapped with witty comments. Of course, you can just do that! But you can also share your entire CoinStats Wrapped with just a click. When you get to the end of your Wrapped, you’ll see this screen:

Tap on the upper right corner to share your year in crypto with your fans, friends, and foes. That’s it, now everyone will know about the best and worst of your portfolio this past year.

Hope you’ll enjoy recapping your year in crypto investing with CoinStats. Don’t forget that there’s always 2023 – the perfect year to experiment with your strategy, discover something new in the ecosystem, and, as a result, end up with a much cooler Wrapped. Good luck 😘

Who’s the friend or foe that will get a crypto gift card from you this holiday season? 🤔

Whoever it is, we’re sure it’ll be the most unique and intriguing gift of all! The most magical time of the year usually means a bevy of $5 socks 🧦 and $10 books 📖 And while there’s nothing wrong with conventional gifts, maybe this year you should mix it up a little bit. 

Bet you’re wondering why your grandma should get SHIB or your broke friend AAVE. Well, there are quite a few reasons why you should consider going for a crypto gift card.

• The crypto ecosystem is constantly expanding, and after you give the gift of crypto, your friends and family may take interest in it and become a part of something trendy and exciting. 
• Gifting crypto is the digital age version of gifting cash, and who doesn’t love getting money as a gift?
• It’s a good way to show your grandma or grandpa that you think they can still get with the times and share your interests. It’s an endearing invitation into your world. 
• Crypto makes for the ideal last-minute gift. A beautiful design, a heart-warming message, and your favorite cryptocurrency can be easily packed into one shareable link. 
• You never know when this or that cryptocurrency will go to the moon. Your crypto gift card may end up being a pretty good investment, growing with time and enriching the lucky recipient. 
• Giving crypto as a holiday gift is gradually getting popular but it’s still pretty rare and unique. Many will appreciate the originality and the element of surprise.   

What Is a CoinStats Gift Card?

CoinStats Gift Card is the easiest way to gift crypto this holiday season and beyond. It only takes a few clicks to choose the coin you want to give and the right amount, select a fitting design, add a warm or funny message, and pack these up into one festive link. We even have a few pre-designed labels to make your gift even more special! Your CoinStats Gift Card will be on its way to the recipient in no time, and you can even track it if you get impatient 🙌

Your family, friends, and foes will be happy to find out just how easy it is to enter the crypto rabbit hole after getting a CoinStats Gift Card as a gift. All they need to do is download CoinStats and deposit their gift into CoinStats Wallet. From that moment on, they will have the whole ecosystem at their fingertips and can freely explore DeFi and NFTs.

To buy crypto gift card from CoinStats then means to send your loved ones a compact and well-designed invitation to the finance of the future! So, what are you waiting for?

How to Create and Send a Gift Card?

You don’t buy a ready-made CoinStats Gift Card, you create it! We have an array of options for backgrounds, coins, and labels for free. CoinStats Gift Card is free of charge, and you only pay for the crypto you’re gifting. 

Ready to give your friends the gift of degenhood? Just follow these simple steps (Gift cards are available on mobile only.):

That’s it. Your gift will be created in a couple of seconds and you can share it with the recipient. 

How Do I Redeem a CoinStats Gift Card?

Congratulations on receiving a crypto gift card as a holiday gift. If you play your cards right, you can get so much out of this present. Here’s what you need to do if you get the magical CoinStats link sent to you. 

If you want, you can then tap on Share Your Gift to let the world (AKA your friends on social media) know.

Following the deposit, you can venture out and explore the crypto ecosystem via CoinStats app. Or, if you prefer to keep it conservative, you can just track the crypto you received.

Is CoinStats Gift Card Free?

Yes, CoinStats Gift Card, along with its design and label options, is completely free. You will only pay for the coins you want to send. This is what makes it one of the best cryptocurrency gift card options on the market!

🎄 Happy Holidays

… to all the current and future crypto bros and sisters! It is time to open up your world to everyone constantly asking about absurd NFT prices or the ETH Merge. This year is the year you slip an elegant crypto gift card into the stocking. We’ll always be around, making your gift-giving so much easier and a tad more charming.

The crypto market has been going through a bear phase for almost a year since it reached its all-time high in 2021. Since then, the prices of BTC, ETH, and all other altcoins have fallen anywhere between 50 to 90%.

If you’re among investors whose portfolio is down heavily, you might consider staking your crypto assets to earn staking rewards and weather the storm while waiting for the next bull run rather than selling them at a loss.

Polkadot (DOT) is down by more than 80 percent since its all-time high. You can check the Polkadot current price at Polkadot Price on CoinStats. Polkadot provides one of the best staking coins because it uses scalable, multi-chain technology and a variant of PoS called Nominated Proof-of-Stake (NPoS) consensus mechanism. Staking Polkadot enables you to become a validator within the Polkadot network and earn passive rewards for your efforts. Polkadot comes with an average annual return of 14%, which makes it among the best staking coins in the crypto market.

Read on to learn everything you need to know about Polkadot and how to earn staking Polkadot (DOT) to make the most of your crypto holdings. 

Let’s get right to it!

What Is Polkadot?

Polkadot is a next-generation sharded Layer 1 blockchain that connects multiple blockchains, facilitating the exchange of data and value between previously incompatible networks (i.e., Bitcoin and Ethereum) in a trustless way. The Polkadot network is secure, scalable, decentralized, and multi-chain. Its innovative concepts for scalability, interoperability, governance and blockchain code update have earned Polkadot the nickname the “Ethereum killer.”

Polkadot aims to create a decentralized web, granting users complete control and delivering an interoperability protocol that uses shards to scale the Network. It connects blockchains facilitating a new form of the web where independent blockchains can exchange data and value in a trustless way.

Polkadot is designed to sustain all three distinguishing traits of blockchains – decentralization, speed, and security in a trustless environment.

The Polkadot blockchain’s native DOT token is used for staking and governance.

The Polkadot whitepaper was released in 2016 by Dr. Gavin Wood, the Ethereum co-founder and the inventor of the Solidity smart contract language. Dr. Gavin Wood, Peter Czaban, and Robert Habermeier founded the Web 3 Foundation in Switzerland in 2017, with Polkadot being its flagship protocol. The DOT tokens were sold through the first ICO in 2017 and a second ICO in 2020. 

What Is Staking?

Now that we know what the Polkadot network is let’s look into staking. Blockchains use a consensus mechanism to verify data and transactions on the blockchain network. Proof-of-Work (PoW) and Proof-of-Stake (PoS) are two of the most prevalent consensus mechanism algorithms, each of which works on different principles.
In a Proof-of-Work blockchain, transactions and data are verified using a method called mining, in which miners have to solve complex mathematical problems to verify and process transactions and add them as a new block in the blockchain. The PoW mechanism of verifying transactions on the blockchain is robust and secure but also energy inefficient and causes scalability issues by hindering the number of transactions that can be processed by a blockchain simultaneously.

On the other hand, in a PoS consensus, a participant node is allocated the responsibility of maintaining the public Ledger in proportion to the number of virtual currency tokens it holds. On a Proof-of-Stake blockchain, the right to verify transactions is assigned to users randomly based on the number of tokens they have staked. So, holders of a required number of coins can earn staking rewards and participate in validation, i.e., verify transactions as needed. Participants staking their crypto in a PoS blockchain for an agreed-upon ‘staking period’ to provide value to the Network and earn rewards in return are called validators.

A Proof-of-Stake blockchain is less power-consuming and, therefore, solves scalability issues faced by a Proof-of-Work blockchain.
You can learn about staking in detail with our detailed guide, What Is Staking. 

Staking only applies to blockchains that utilize the Proof-of-Stake (PoS) consensus mechanism to validate transactions. Users can stake cryptocurrency tokens on any staking platform of their choice. Most staking platforms are user-friendly and easy to use, so you can start staking on almost all major crypto exchanges, like Coinbase, Binance, etc., without prior experience.

How Does Staking Polkadot (DOT) Work?

The Polkadot blockchain deploys a Nominated Proof-of-Stake (NPoS) consensus mechanism that involves validators and nominators. Validators are the big stakers with a large number of DOT tokens and robust investment history on the blockchain. They are the ones who are up for nomination to validate a new transaction block, earning rewards in the process. A validator that doesn’t act by the Polkadot protocol and tries to verify a bad or fraudulent transaction or indulges in suspicious activities is penalized through slashing when they lose the DOT tokens they have staked. When staking Polkadot, it’s essential to stay up-to-date on the state of the chain and validator lists because you can lose DOT tokens if an incompetent validator doesn’t comply with the blockchain’s standards.

Nominators are the small stakers tasked with selecting validators for nominations.  A nominator publishes a list of validator candidates they trust and stakes DOTs to support them. Nominators’ stakes are distributed amongst validators, and they earn a percentage of the block rewards validators earn. If some of these candidates are elected as validators, the nominator shares with them the payments based on the proportion of their DOT tokens. 

The relationship between validators and nominators keeps the Polkadot blockchain running.
The rewards for staking Polkadot are distributed in the form of DOT tokens, with DOT rewards being as high as 21 percent, depending upon the chosen staking platform. There is a minimum staking requirement of 10 DOT tokens for staking Polkadot directly on the Network, and the amount varies depending on the staking platform. 

How to Stake Polkadot (DOT) on Binance?

Now that we have a very good understanding of how Polkadot staking works let’s get into staking Polkadot to start earning staking rewards. One of the best places for staking Polkadot is Binance, the world’s largest crypto exchange in terms of the trading volume. Follow the steps highlighted below to stake Polkadot on Binance.

1. Create a Binance Account

If you don’t have a Binance account, then the first step is creating an account on Binance. Binance, like many other cryptocurrency exchanges, offers a hassle-free registration with only an email address or valid mobile number. A link will be sent to your address or mobile phone, and you must click it to verify your account. Once the account is activated, you must create an elaborate password, and you’re good to go.

While Binance doesn’t have mandatory KYC and AML requirements, users must complete the KYC verification process to gain full access and increase higher deposits and withdrawal limits. You must provide personal information and a government-issued identity card to verify your account.

Once your identity verification is complete, it’s recommended to activate two-factor authentication (2FA) for an extra layer of security.

2. Buy or Deposit Polkadot

After setting up your account, the next step is to deposit Polkadot (DOT) into your Binance account. You must send Polkadot (DOT) from your cryptocurrency wallet to your Binance account. On the other hand, if you don’t own Polkadot (DOT) tokens, you can easily buy them on Binance using fiat currencies, credit or debit cards, bank transfers, or peer-to-peer transactions. 

3. Stake Polkadot

Once you have the required amount of Polkadot(DOT) tokens in your Binance wallet, you’re all set to start your Polkadot staking. Go to Binance Earn and search for DOT. Choose among the options depending on the type of staking products, how much you’re willing to stake, and the lock-up period. While flexible staking is among the given options, its APR is low. In contrast, locked staking guarantees higher returns, but your DOT tokens will be locked up for the agreed-upon period. 

Select the option that suits your needs, enter the amount of Polkadot (DOT) you want to stake, agree to the terms and conditions, and confirm the transaction. 

Congratulations, you’ve successfully started staking Polkadot and receiving rewards. Your Spot Wallet is the rewards destination, and you can track them daily. 

Polkadot Staking Using a Ledger Device

Ledger hardware wallet is one of the world’s best wallets for securely storing your assets. And the good news is you can now use the Ledger hardware wallet to stake Polkadot and earn rewards. Follow the steps described below to start staking Polkadot using a Ledger device.

Set up Your Ledger Device

1. Connect your Ledger hardware wallet to your computer and unlock it using your PIN. 
2. Go to the Ledger Live app, allow Ledger Live on your Ledger device, and click the Earn rewards button. 
3. Click the Manager tab, search for Polkadot, and click Install. 
4. Click Polkadot JS and Manage Hardware Connections in Settings.
5. Select Attach Ledger via WebUSB and click Save. 
6. On Polkadot JS, click Accounts and select Add via Ledger. This will open a pop-up where you must set up your Polkadot Account.
7. Select an account type and index, as they’re used to define your address on the Polkadot blockchain. If you aren’t sure which one to choose, you can select the default (o/0). 
8. You can now find your Polkadot Ledger Account and its address at the bottom. Ensure that the Polkadot address on the hardware device is the same as the one on the Polkadot JS. 
9. Fund your Polkadot account with the amount of DOT tokens you want to stake. Deposit more than you wish to stake for paying transaction fees on the Polkadot blockchain. 
10. Now you’re all set to begin staking DOT and earn rewards using your Ledger wallet. 

Staking DOT on Polkadot

Polkadot doesn’t support batch transactions, therefore, you must perform two transactions to stake DOT. Follow the steps described below to stake DOT on the Polkadot network. 

1. In your Polkadot Account, click Network and select staking. 
2. Click Account Actions and select +Stash. Choose the Ledger account as your Stash and Controller account. 
3. Choose an account for your rewards destination and click Next to bond your Polkadot tokens. 
4. Remember to leave more than 1.5 Polkadot tokens in your account and not bond them, as accounts with less than 1 DOT token are reaped. You also need DOT to pay the transaction fees.
5. Click Bond, select Sign, and Submit. 
6. Confirm the transaction on your Ledger wallet to view it under Account Actions in the Staking section on Polkadot JS. 
7. Select as many as 16 validators and click Nominate. You can select all 16 validators, then click Nominate, Sign, and Submit the transaction. 
8. You have now successfully managed to stake Dot on Polkadot using your Ledger device. 

Final Thoughts

In summary, staking DOT is one of the best ways to receive rewards, especially in a bear market when cryptocurrency prices are down historically. Moreover, it allows you to support the Polkadot project, aiming to provide a decentralized internet or web application for blockchain networks to communicate with each other. The Network provides information and transactions to be performed in a secure environment.

Consider choosing the Ledger hardware wallet for staking DOT to ensure the best security of your Polkadot investment.

The holiday season between Thanksgiving and New Year’s Day is the time to surprise and delight those we love with the perfect gift. If you think traditional gifts are repetitive and boring but still want to show love and appreciation to those special to you, you’re in the right place. A crypto gift is a new type of click-of-a-button gift to surprise your loved ones and help them achieve financial freedom. According to a BlockFi survey, one in 10 people gave crypto as a gift the last holiday season, so your family and friends surely must have heard or read about people who made life-changing money through crypto.

While struggling to figure out what to get your loved ones for the holidays can sometimes be a hassle, finding the perfect gift really feels great. So, in this article, we’ll provide a detailed guide on how to gift cryptocurrency to friends and family for the holidays.

Why Gift Cryptocurrency?

If you want to buy cryptocurrency for your loved one, there are several reasons to do so. As a cryptocurrency investor, who has made decent profits from trading crypto, you can set family and friends on a wonderful journey of making life-changing money, achieving financial freedom, or earning steady passive income. 

In addition to making a gift that might increase in value, you can contribute to the social integration of crypto by increasing familiarity and involving new users. Your crypto gift will create the perfect opportunity for you to make the most of this year’s holiday and discuss crypto investment advantages with your family members and friends as long as they remain curious and open to the conversation.  If every crypto enthusiast gifts cryptocurrency to just one person, the social integration of crypto will increase exponentially.

Buying gifts is certainly a skill, and when your loved ones learn their crypto can increase by value shortly, you’ll most likely gain this year’s “best gift giver.”

Crypto Gifting Guide

Now that you’ve decided to gift crypto to your loved ones, there are some things to consider before you send them out. Some of the most common ones are highlighted below. 

Own Crypto

Before gifting cryptocurrency, you must have a sufficient amount yourself. If you trade them but don’t own any, you must buy some crypto for yourself. Depending on your investing skills, geographical location, deposit methods, etc., you can either buy cryptocurrency from a centralized crypto exchange or a decentralized exchange. Most centralized crypto exchanges, like Binance, Coinbase, etc., allow you to buy cryptocurrency directly through your bank account or credit or debit cards directly using fiat currency. All you need to do is register a Binance or Coinbase account, deposit funds, and you’re good to go. Ensure you buy enough crypto to cover the network fees and the transaction costs. To learn more, visit our detailed guide on “How to Buy Cryptocurrency“. 

After you’ve purchased crypto from the crypto exchanges of your choice, we highly recommend storing your coins securely in a non-custodial wallet. 

Educate Your Loved Ones

This is probably one of the most complicated steps in gifting cryptocurrency. While you don’t have to do anything for those already familiar with crypto and the risks associated with digital currency, much explanation is needed for those utterly unaware of crypto assets.

Get into detail about crypto’s unregulated and highly volatile nature and explain how they can protect their crypto gifts against the most common risks, like high volatility, rug pulls, the collapse of exchanges, scams, etc. Teach them how to keep their cryptocurrency assets safe by storing them in hardware or cold wallets used to store cryptocurrencies offline. Introduce them to software wallets such as Metamask, Trust, CoinStats Wallet, etc., and the meanings of such key terms as “wallet address,” public and private key. Ensure they understand they shouldn’t give out their private key to anyone under any circumstances and that if they lose or forget the private keys, their virtual currency and digital assets will be lost forever. 

You might also want to teach them how to receive cryptocurrency or send cryptocurrency. The gift recipient must understand that if they want to receive cryptocurrency or send Bitcoin, it’s paramount to correctly enter the recipient’s wallet address. 

How to Gift Cryptocurrency?

Now that you know the basics of cryptocurrency gifts, let’s explore a few options to actually gift crypto to family and friends. 

Send the Crypto Gift to a Crypto Wallet

Gifting crypto to people who’ve already invested in crypto or regularly trade crypto is easy. You can send crypto gifts directly to their wallets. Just ensure you don’t enter the wrong address of the recipient’s crypto wallet or that the network you’re using to send crypto is the same at both ends. Follow the steps described below to send your crypto gift:

• Enter the recipient’s wallet address and the network correctly before sending crypto. You can also enter it by scanning the wallet’s QR code. 
• Enter the amount of crypto you wish to gift and complete the transaction. 
• There should be no issue with sending cryptocurrency if you’re using the crypto wallets provided by the cryptocurrency exchange and you’ve entered the address correctly. 
• If you’re using self-custody crypto wallets, consider issues associated with crypto transactions, such as network congestion. You can always track cryptocurrency transactions and ensure they go through successfully by paying higher network fees. 

Gift Crypto in a Wallet

If you want to make a crypto gift to someone who isn’t into trading or investing and isn’t technologically well-versed, giving the crypto gift in a cryptocurrency wallet would be a great idea. You can either store the digital assets you’re gifting in a hardware wallet/cold wallet or set up a software wallet/hot wallet. Ensure to hand over the passwords, public and private keys, etc., to them. You could also set up a paper wallet for them. With a paper wallet, you’d only be handing them the keys to their digital money written on a piece of paper that they should store securely. 

Gift Physical Coins 

You can also get the physical coins of the gifted cryptocurrency. A digital asset, along with its physical iteration, is among the best creative gift presentation ideas and will make a perfect gift.

Congratulations! Now you know how to gift crypto to your loved ones this holiday season. 

Concerns Associated With Gifting Crypto

Now let’s look into some of the most common concerns associated with crypto gifting:

Which Crypto to Gift

If the gift recipient is a crypto investor or enthusiast, you can gift them any crypto of their choice. On the other hand, if it’s someone unfamiliar with crypto, you’d better gift them only blue chip crypto such as Bitcoin, Bitcoin Cash, Ethereum, Litecoin, etc. This is because these coins have been proven historically to be less volatile. Most crypto exchanges, like Binance, let you choose which crypto you wish to gift with the gift card so that you can select only Bitcoin in the gift card. 

Tax Implications: Are Cryptocurrency Gifts Taxed?

As with any financial gift, you have to pay gift taxes on crypto as well. The Internal Revenue Service (IRS) considers digital assets as property for taxation; hence the recipient will have to pay taxes on them. However, there is a standard annual gift tax exclusion by Internal Revenue Service. So, if you’re sending crypto up to the gift tax allowance amount, there is no need to pay tax. Moreover, cryptocurrency gifts are only taxed when withdrawing crypto and selling, trading, or using it to make any payment. If the person receiving a crypto gift sells it after more than a year, it counts as a long-term capital gain, which is taxed just like ordinary income tax. Hence, receiving a crypto gift isn’t a taxable event, but using crypto gifts is taxed. Ensure you don’t exceed the limit set by the IRS if you want to avoid the hassle of taxation. 

Final Thoughts

Gifting crypto to your loved ones is an excellent way to help them embark on a beautiful crypto journey and contribute to the cryptocurrencies’ mass adoption. Moreover, since we’re in a bear market, and the mood in crypto markets is at an all-time low, gifting crypto right now might just turn out to be the best decision of your life. We hope you’ve learned what to consider before making crypto gifts.

Disclaimer: This article is only meant for educational purposes, and nothing written here is a piece of financial or investment advice. Cryptocurrencies are highly volatile and unregulated, and users should do their own research before investing in them.

Algorand is an open-source, decentralized blockchain network with a native cryptocurrency, ALGO, designed to achieve scalability, security, and decentralization in one blockchain network. It leverages a two-tiered structure and a unique variation of the Proof-of-Stake (PPoS) consensus mechanism to provide immediate transaction finality, i.e., processing over 1,000 transactions per second (TPS) and achieving transaction finality in less than five seconds.

Staking is a significant feature to facilitate the Algorand blockchain’s seamless operation. Algorand’s Pure Proof-of-Stake (PPoS) consensus mechanism has a low minimum staking requirement for participating in and securing the network — only one ALGO coin is needed to participate.

Staking Algorand is one of the easiest ways to earn passive income on your ALGO token holdings.

Read on for our detailed guide on why, where, and how to stake Algorand (ALGO) to earn exciting rewards while helping secure the Algorand blockchain.

Let’s get right to it!

What Is Algorand?

Algorand is a decentralized open-source network built to solve the Blockchain Trilemma by achieving scalability, security, and decentralization in one blockchain network. It uses a unique Pure Proof-of-Stake (PPoS) consensus mechanism to enable complete decentralization with top security and scaling while achieving near-instant finality, i.e., processing over  1,000 transactions per second (TPS) and achieving transaction finality in less than five seconds.

Moreover, many DApp developers have turned to Algorand as an Ethereum alternative for creating and deploying decentralized applications (DApps) due to Ethereum’s high gas fees.

ALGO is the blockchain’s native token and one of the top staking coins used for carrying out transactions and securing the network. Algorand is based on ALGO holders and ALGO block producers, i.e., node runners. It distributes validator rewards to all ALGO holders.

In a PPoS mechanism, all users, including holders, are eligible to randomly propose and validate blocks on the blockchain and earn ALGO staking rewards proportional to their stake. The minimum amount of ALGO tokens required for Algorand staking is just one ALGO token. 

To learn more about staking in general, you’re welcome to visit the CoinStats guide “What Is Staking.”

Algorand History

The Algorand blockchain was founded by Turing award-winning cryptographer and MIT professor Silvio Micali in 2017. The protocol’s core development was overseen by Algorand Inc., a private corporation based in Boston. While the Algorand Foundation manages the Algorand network’s ecosystem growth, award funding, cryptographic research primitives, on-chain governance, and decentralization.

The Algorand network went live in 2019. It’s carbon-neutral and has been operating without a second of downtime since then.

Where to Stake Algorand?

Algorand (ALGO) is one of the world’s top 50 cryptocurrencies in terms of market cap and is listed on almost all major crypto exchanges. Some of the popular platforms to use for Algorand staking are Binance, Coinbase, Crypto.com, etc. Moreover, Crypto.com enables users to benefit from its soft-staking feature.

The Algorand blockchain gives out daily rewards for staking Algorand (ALGO). You can also stake Algorand using hardware wallets like Ledger Nano X through a relatively easy staking process. This allows you to earn passive income through Algorand staking while having your ALGO coins stored securely in a hardware wallet. However, the downside of staking Algorand (ALGO) using the Ledger wallet is that you must claim your tokens manually using the Ledger desktop app. So, if you want to earn a small passive income without hassles, staking Algorand (ALGO) on a centralized exchange is a better option. 

How to Stake Algorand (ALGO) on Coinbase?

Coinbase is one of the world’s most popular crypto exchanges that supports ALGO staking. The process of Algorand staking on Coinbase is pretty simple; however, it’s not supported in North America, South America, Australia, Europe, the Middle East, Asia, and Africa.Therefore, residents in these regions with a Coinbase account and Algorand tokens won’t be eligible for ALGO staking rewards.

The minimum requirement to stake Algorand on Coinbase is only 0.01 ALGO. All you need to stake Algorand (ALGO) on Coinbase is to activate Coinbase Earn and start earning Algorand staking rewards of up to 5.75 percent APY.

How to Stake Algorand (ALGO) on Binance?

Binance is the world’s largest crypto exchange in terms of trading volume and one of the best platforms to stake ALGO. Users from most countries can easily stake ALGO on Binance; however, Algorand (ALGO) staking on Binance.us has been discontinued recently. “Locked Staking” is available for 30, 60, or 90 days, withstaking yields ranging from 4,50 to 5.80% and the minimum staking amount of 10 ALGO.

To stake ALGO on Binance, you must:

• Have a sufficient amount of ALGO in your account.
• Go to EARN, search for ALGO, click on your preferred staking product, and Confirm your staking request. 

Algorand Staking With Algorand Wallet

Algorand can also be securely stored and staked on the official Algorand Wallet to earn staking rewards of up to 6% APY. Moreover, the Algorand Network enables you to become part of the governance and automatically start earning staking rewards while simply holding your ALGO coins in the Algorand wallet. The Algorand Wallet is available for both iOS and Android. MyALGO wallet is another common choice among Algorand users. 

Frequently Asked Questions

Is Algorand Good for Staking?

Algorand (ALGO) staking is much more profitable than simply holding your ALGO tokens in a wallet or cryptocurrency exchange. Moreover, it becomes all the more beneficial, especially in times of a bear market when ALGO, BTC, and ETH prices have been down by over 50 percent. 

How Much Can I Earn Staking ALGO?

Interest rates vary depending on the platform you choose to stake ALGO, ranging from 4 to 6 percent. The interest is paid daily, and you can even get your staking rewards every 20 minutes while staking Algorand (ALGO) using a Ledger wallet.

Algorand (ALGO) Current Price

The ALGO token was launched in June 2019 through an Initial Coin Offering (ICO) at the price of USD 2.4 per ALGO. The ALGO token current price has fallen even lower than the ICO price, presenting you with an excellent opportunity to buy ALGO and earn passive income on your investment before the crypto markets recover and enter the next bull run.

You can check the live ALGO price on CoinStats. Currently, ALGO has a circulating supply of 7,019,516,928 tokens, a market cap of USD 2.1 billion, a 24-hour trading volume of USD 100.3 million; and the total supply of ALGO is capped at 7,250,033,192 tokens.

Conclusion

Staking is one of the best ways to earn passive income on your crypto holdings. Algorand (ALGO) is one of the pioneers in staking and even gives out rewards for simply holding ALGO tokens. Although the ALGO price is down significantly, its prospects look bright, as Algorand is one of the few blockchain projects to tackle the blockchain trilemma successfully

. Therefore, ALGO staking is one of the best things you can do right now, and if you don’t own any ALGO, what are you waiting for?

If you’re interested in learning more about crypto tokens, projects, and platforms making waves in the crypto market, visit CoinStats, your learning hub and one-stop shop for crypto. 

As a web3 enthusiast, you’ve undoubtedly had your fair share of trouble navigating the space at least once. 

Whether it’s the sheer number of platforms that offer different NFT prices, or the lackluster user experience, issues in this evergrow…

You Say Fees – We Say ZERO!

Are you stressed out by everything that is happening with crypto exchanges recently? The saying “not your keys, not your coins” rings true now more than ever. But, how can you buy crypto without surrendering your newly-b…

Blockchain technology and Web 3 elements, such as interactive games, Fan Tokens, NFT collectibles, etc., have made the FIFA World Cup Qatar 2022 event special. The world’s most famous football teams, including Manchester City, Barcelona, Flamengo, Paris Saint-Germain, AS Roma, Atletico Madrid, Juventus, Galatasaray, Inter Milan, Arsenal, FC Porto, Corinthians, the Brazil National Football Team, the Portugal National Team, etc., have launched Fan Tokens, a new method for sports enthusiasts to connect with their favorite clubs and players.

Fan Tokens are digital assets that empower fans to get more deeply involved with their preferred team and create new sponsorship opportunities for sports clubs. A Fan Token allows fans to access exclusive rewards and limited NFT collections, match tickets, promotional meet and greet events, and special merchandise and grants them voting rights. Investors worldwide invest in their favorite clubs to demonstrate their support for them and gain access to rewards, benefits, and money-can’t-buy experiences. While Fan Tokens are still relatively new, they’re quickly establishing themselves as the future of the sports economy.

One such token is the Spain National Fan Token (SNFT), and today we’re bringing you a detailed guide on SNFT Fan Tokens and a quick tutorial on how to buy Spain National Fan Token (SNFT) in a few steps.

Let’s get right to it!

What Is Spain National Football Team Token?

The Spain National Football Team Token (SNFT) is the official Fan Token for the Spain National Football Team. The Spain National Football Team has represented Spain in international men’s football competitions since 1920. It has participated in a total of 16 of 22 FIFA World Cups and is one of only eight countries ever to have won the FIFA World Cup.

The SNFT Token is aimed to deliver a privileged fan experience for the Spain football club fans by allowing holders to participate in exclusive meet-and-greet events and surveys, get exclusive rewards, discounts, limited NFT collections, and match tickets, earn loyalty rewards, and vote on club decisions.

The Spain National Football Team Fan Token is a BRC-20 smart contract built on Bitcichain. SNFT Token allows fans to participate in exclusive surveys and events, access exclusive rewards and limited NFT collections, and enjoy gamification features, fan incentives, and unique experiences. By being incorporated into the future ecosystem of the Spanish Federation, SNFT also provides an E-Commerce opportunity. It enables voting, donation, and access to exclusive videos, among other things. SNFT Fan Token strengthens the bond between the team and fans by providing fans with new opportunities to interact and grow with their favorite team.

SNFT Use Cases

Spain National Football Team Fan Token (SNFT) has the following use cases:

E-Commerce

SNFT Token can be used as payment for shopping payments, products, tickets, memberships, etc., via BitciPay or FanApp in the Spanish Football Federation’s potential future e-commerce ecosystem.

Games and Quests

SNFT Token holders have access to various missions and gamification features on the Bitci Fan Token Platform.

Loyalty Subscription

SNFT Token holders can spend their tokens to get fan prizes, digital collectibles, loyalty points, and more.

Donation

SNFT Token holders can donate directly to their favorite team and receive a loyalty badge or NFT in exchange.

Survey and Events

SNFT Token holders can participate in Paid and Free Surveys and Events on the Bitci Fan Token Platform.

Advantages

SNFT Token holders interact with the Spanish National Football Team on the Bitci Fan Token Platform to meet and greet the Players or Legends, make one-on-one phone calls, access the locker room, watch matches in VIP areas and get signed and limited edition products. Benefits are available for collectors, among other things.

SNFT Tokenmics

The SNFT Token provides Spain National Football Team fans greater accessibility, functionality, and lower transaction fees.

SNFT was traded for the first time on October 6, 2021. SNFT Token has a total supply of 99,285,000 and a circulating supply of 24,285,000 tokens. Check the SNFT current price, 24-hour trading volume, fully diluted market cap, and other data, and get real-time updates on SNFT USD price on CoinStats, one of the best platforms around.

Token Utility

The Spain National Football Team Token offers numerous ways for fans to interact with the team, such as limited collections, integration with the Bitci NFT Marketplace, interactive team rewards, special fan privileges, voting rights, exclusive brand experiences, and gamification.

• Token Name – SNFT
• SNFT Pre-Sale Amount – 25,000,000 SNFTs
• Market Listing Quantity in Circulation – 25,000,000 SNFTs (25%)
• SNFT Pre-Sale Price – 0.5 EURO / SNFT
• Bitci Pre-Sale – 25.00% over Total Pieces
• Set – 75.00% over Total Pieces

How to Buy SNFT Token?

Interested in buying the SNFT coin? Follow the instructions below to purchase SNFT in a few simple steps.

Step #1: Select a Crypto Exchange

SNFT tokens are accessible on an increasing number of cryptocurrency exchanges, including:

• Gemini
• Huobi Global
• WazirX
• Crypto.com
• Poloniex

Visit the market page on CoinStats to view the exchange platforms supporting SNFT. Compare the exchanges’ security, user experience, fee structure, supported cryptocurrencies, etc., to choose the one with the features you want, such as low transaction fees, top-notch security, large trading volume, an intuitive interface, round-the-clock customer service, etc. Consider if the cryptocurrency exchange is licensed by the Financial Industry Regulatory Authority (FINRA) and allows you to buy digital coins using your preferred payment method.

In the crypto world, any trader is confronted with the initial choice between centralized and decentralized crypto exchanges, so let’s look into the details of each type below.

Centralized Exchange

A centralized crypto exchange or CEX, such as Coinbase, eToro, Binance, etc., is governed by a centralized system and charges specific fees for using their services. Most crypto trading takes place on centralized exchanges, allowing users to convert their fiat currency directly into crypto easily. Centralized exchanges require users to follow KYC (know your customer) and AML (anti-money laundering) rules by providing information and personal identification documents. However, a CEX holds your digital assets on its platform while trades go through – raising the risk of hackers stealing the assets.

Decentralized Exchange

On the other hand, a decentralized exchange (DEX), like Uniswap, SushiSwap, Shibaswap, etc., is not governed by any central authority; instead, it operates over blockchain and charges no fee except for the gas fee applicable on a particular blockchain, i.e., on the Ethereum blockchain. Decentralized exchanges use smart contracts to let people trade crypto assets without needing regulatory authority. They deploy an automated market maker to remove intermediaries and give users complete control over their funds. Decentralized exchanges are less user-friendly in terms of interface and currency conversion. For instance, they don’t always allow users to deposit fiat currency in exchange for crypto; users have to either already own crypto or use a centralized exchange to get crypto. It also takes longer to find someone looking to trade with you as DEX engages in peer-to-peer trade, and if liquidity is low, you may have to accept concessions on price and quickly sell or buy low-volume crypto.

Step #2: Create an Account

After you’ve decided on a cryptocurrency exchange that meets your investment needs, you must register with the exchange by providing a legitimate email address or cell phone number. You will receive an email with a link that you must click to authenticate your account. Once the account has been activated, you must generate a complex password before you may use it. 

Some exchanges have stringent KYC and AML standards, and you must supply personal information such as:

• Full name
• Residential address
• Date of Birth
• ID Document. 

To complete the process, you may also be required to upload a selfie or go through video verification.

Once your identity has been verified, it is recommended to enable two-factor authentication (2FA) to add an extra layer of security.

Step #3: Deposit Funds

The next step is to fund your account. Many cryptocurrency exchanges accept fiat currencies such as USD, EUR, etc. Simply choose your desired deposit method, such as a bank transfer, wire transfer, credit or debit card, e-wallet, PayPal, etc., as well as the currency you want to deposit. Tap “Deposit Funds,” enter the amount you wish to deposit, and then click “Deposit.”

Some deposit methods are extremely fast, while others require a confirmation from authorities, depending on the amount. Remember to compare the fees associated with various deposit methods, as some have higher fees than others.

• Credit or Debit Card

Linking your debit card to your cryptocurrency account is helpful since it allows you to make quick or regular transactions, but note that it incurs an extra fee.

• Bank Account

Bank transfers from your local bank accounts are usually free, but you should double-check with your exchange.

Step #4: Buy SNFT

To buy SNFT at the current price, use the following steps:

• Go to your crypto exchange, enter SNFT in the search field, and click “Buy SNFT” or the equivalent.
• Choose a trading pair you wish to buy SNFT against. 
• Choose a payment method, a currency, and enter the amount of SNFT or fiat currency to be spent. Most exchanges will convert the amount automatically to show you how many SNFT tokens you’ll receive.
• Recheck the transaction information before clicking “Confirm.”
• Once the transaction is processed, the SNFT tokens will be displayed in your balance. 

Go to the Trade page and search for the SNFT pairs (SNFT/USD or SNFT/USDT) to trade SNFT on spot markets. Choose a trading pair and check the SNFT price chart. Click “Buy SNFT” and select the “Market.” Enter your amount or select a deposit percentage by clicking the percentage buttons. Confirm the transaction by clicking “Buy SNFT.”

Congratulations on adding SNFT tokens to your crypto portfolio! 

Step #5 (Optional): Store SNFT

While your SRM tokens can be stored in your brokerage exchange wallet, experts highly recommend storing your precious coins away from exchange wallets, as those might be susceptible to hacks and interference. 

We highly recommend creating a private wallet with your own set of keys. Depending on your investing preferences, you might choose between software and hardware wallets: 

Software Wallets

If you’re planning to trade SRM regularly, software or hot wallets provided by your selected crypto exchange will suit you. The strength of software wallets lies in their flexibility and ease of use. Available for download as a Chrome extension and as a mobile app, a software wallet is the most easy-to-set-up crypto wallet and lets you easily interact with several decentralized finance (DeFi) applications. However, these wallets are vulnerable to security leaks because they’re hosted online. So, to keep your private keys in a software wallet, conduct due diligence before choosing one to avoid security issues. We recommend a platform that offers 2-factor authentication as an extra layer of security.
Examples of software wallets include CoinStats Wallet, MetaMask, Coinbase Wallet, Trust Wallet, and Edge Wallet, amongst others.

Hardware Wallets

Hardware or cold wallets are usually considered the safest way to store your cryptocurrencies as they offer offline storage, thereby significantly reducing the risks of a hack. They are secured by a pin and will erase all information after many failed attempts, preventing physical theft. Hardware wallets also let you sign and confirm transactions on the blockchain, giving you an extra layer of protection against cyber attacks. These are more suitable for experienced users who own large amounts of tokens.
Ledger hardware wallets are arguably the most secure, letting you securely manage your digital assets. The Nano X is designed for advanced users and offers more storage space and advanced features than Ledger Nano S,  designed for crypto beginners.

Examples of cold wallets are Trezor Model T, Ledger Nano X, CoolWallet Pro, KeepKey, Ellipal Titan, and SafePal S1, amongst others. 

Step #6 (Bonus Step): Track SNFT Tokens

The crypto market is volatile, and managing your portfolio could get tricky if you hold multiple assets. Utilizing a portfolio tracker will help you keep track of the real-time performance of your SNFT tokens and all your crypto investments from one platform at all times. CoinStats Portfolio Tracker enables you to monitor the profit, loss, and liquidity across several exchanges.

You can also monitor the profit, loss, and liquidity of Spain National Football Team Token across several exchanges on CoinStats.

CoinStats supports over 250 cryptocurrency exchanges and over 7,000 cryptocurrencies. It offers charting tools, analytical data, advanced search features, and up-to-date news. Here you have the opportunity to connect an unlimited number of portfolios (wallets and exchanges), including:

• Binance
• MetaMask
• Trust Wallet
• Coinbase
• Kraken
• Kucoin
• Bitstamp and 500 others. 

To connect, go to the CoinStats Portfolio Tracker page and:

• Click Add Portfolio and Connect Wallet.
• Click the wallet you want to connect to (e.g., Ethereum Wallet).
• Input the wallet address and press Submit.

FAQs

Where can I trade my Spain National Football Team Fan Token?

Spain National Football Team Fan Token is available for trading on MEXC Global, BigONE, Bitci, etc. The market’s most popular trading pairs for the Spain National Football Team Fan Token are SNFT/GBP, SNFT/USD, SNFT/CAD, SNFT/INR, SNFT/AUD, and SNFT/PHP.

What is Spain National Football Team Fan Token’s highest price?

The price of the Spain National Football Team Fan Token reached its all-time high of $0.778356 on October 02, 2022.

What is Spain National Football Team Fan Token’s lowest price?

The price of the Spain National Football Team Fan Token was at its all-time low of $0.047514 on July 31, 2022.

Can I Buy SNFT with Cash?

There is no direct method to purchase SNFT with cash. You can, however, use markets like LocalBitcoins to first acquire USDT and then complete the remaining processes by moving your USDT to various AltCoin exchanges.

LocalBitcoins is a Bitcoin exchange that works on a peer-to-peer basis. It is a cryptocurrency trading platform where users may buy and sell Bitcoins through advertisements that include the price and payment method they wish to provide. You can use the platform to buy from sellers in a nearby region. While it’s a good place to buy Bitcoins when you can’t find your preferred payment method elsewhere, prices on this platform are usually higher, and you must beware of scams.

Closing Thoughts

FIFA World Cup has brought excitement to the Football Fan Tokens.

SNFT has been up 512.29% in the past three months, despite its very modest market capitalization. While SNFT price can be more volatile during strong market swings compared to companies with greater market caps, with a consistent rise over these months, SNFT has the potential to raise much higher and provide excellent returns. Once again, traders should exercise extreme caution while investing in crypto at all times.

You can also visit our blog for more information about wallets, crypto exchanges, buying guides, and tokens, such as “What are Fan Tokens“, “Top 10 Fan Tokens to Invest in 2022” and many others.

Investment Advice Disclaimer

This content, including any information contained therein, is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any security, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice. Past performance is not a reliable indicator of future performance. When it comes to buying crypto, the value of your investment can go down as well as up, and you may not get back the amount you invested.

Cryptocurrency prices are highly volatile; do your independent research, obtain your own advice, and only invest what you can afford to lose. You should carefully consider your investment experience, financial situation, objectives, and risk tolerance and consult an independent financial adviser before making any investment. There are significant risks involved in trading CFDs, stocks, and cryptocurrencies. Between 74-89% of retail investor accounts lose money when trading CFDs. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant regulators’ websites before making any decision.

Blockchain technology and Web 3 elements, such as interactive games, Fan Tokens, NFT collectibles, etc., have made the FIFA World Cup Qatar 2022 event special. The world’s most famous football teams, including Manchester City, Barcelona, Flamengo, Paris Saint-Germain, AS Roma, Atletico Madrid, Juventus, Galatasaray, Inter Milan, Arsenal, FC Porto, Corinthians, etc., have launched Fan Tokens, a new era for fans to form a strong connection with their favorite clubs and players.

Fan Tokens are digital assets that provide holders access to discounts, promotions, and limited content and grant them voting rights. Fans from all over the world invest in their favorite teams to show their support for them and gain access to rewards, benefits, and money-can’t-buy experiences. While Fan Tokens are still relatively new, they’re quickly establishing themselves as the future of the sports economy.

One such token is the Portugal National Team Fan Token (POR), and today we’re bringing you a detailed guide on POR Fan Tokens and a quick tutorial on how to buy POR tokens in a matter of minutes.

Let’s get right to it!

What Is Portugal National Team Fan Token (POR)?

Portugal Fan Token (POR) is a tokenized membership to the Portugal national football team representing Portugal in international men’s football competitions since 1921. Portugal was the first European national team to launch a Fan Token to improve interaction with their fans.

Portugal National Team Fan Token (POR) is a cryptocurrency token built on the Chiliz platform, a leading global blockchain provider for the sports and entertainment industry. Chiliz (CHZ) is famous for the invention of the Fan Token and is the first sports-based crypto exchange where fans can trade customized Fan Tokens and participate in club-based surveys and pools.

The POR Fan Token allows fans to have a tokenized share of influence on club decisions and engage in a wide range of experiences, for example, the opportunity to meet their favorite players, choose a goal celebration song, etc. POR token holders get access to exclusive promotions and VIP rewards, vote in interactive fan polls, and participate in games and competitions.

To obtain Fan Tokens, you must first purchase Chiliz (CHZ) Tokens via Socios.com and use them to buy POR Fan Tokens.

You may also be interested in visiting our CoinStats blog to learn more about “How to Buy Chiliz” and “What Are Fan Tokens.”

Portugal National Team Fan Token Price

The Portugal National Team Fan Token currently has a circulating supply of 4,001,842, with a total supply of 20,000,000 and a market cap of USD 13.0 million. POR token’s smart contract address is 0xb0bb080667e52bd84884d2c90322706c4aa9067b. The price of Portugal National Team Fan Token has sustained relatively well during the current bear market. You can check the live POR USD price and other metrics at POR price on CoinStats.

How to Buy POR Token?

The Portugal National Team Fan tokens are available for trading on the Socios.com app and several other crypto exchanges like Huobi Global, BitMart, Gate.io, OKEX, etc. Follow our step-by-step buying guide below to buy SRM tokens.

Step 1: Select a Crypto Exchange

POR tokens are available on leading cryptocurrency platforms, so visit the market page on CoinStats to view the exchange platforms on which POR tokens can be traded. Compare the exchanges’ security, user experience, fee structure, supported crypto assets, etc., to choose the one with the characteristics you need, such as affordable transaction fees, an intuitive platform, round-the-clock customer service, etc. Also, consider whether the cryptocurrency exchange is regulated by the Financial Industry Regulatory Authority (FINRA) and allows you to buy crypto using your preferred payment method.

In the crypto world, any trader is confronted with the initial choice between centralized and decentralized crypto exchanges, so let’s look into the details of each type below.

Centralized Exchange

A centralized crypto exchange or CEX, such as Coinbase, eToro, Binance, etc., is governed by a centralized system and charges specific fees for using their services. Most crypto trading takes place on centralized exchanges, allowing users to convert their fiat currencies directly into crypto easily. Centralized exchanges require users to follow KYC (know your customer) and AML (anti-money laundering) rules by providing information and personal identification documents. However, a CEX holds your digital assets on its platform while trades go through – raising the risk of hackers stealing the assets.

Decentralized Exchange

On the other hand, a decentralized exchange (DEX), like Uniswap, SushiSwap, Shibaswap, etc., is not governed by any central authority; instead, it operates over blockchain and charges no fee except for the gas fee applicable on a particular blockchain, i.e., on the Ethereum blockchain. Decentralized exchanges use smart contracts to let people trade crypto assets without needing regulatory authority. They deploy an automated market maker to remove intermediaries and give users complete control over their funds. Decentralized exchanges are less user-friendly in terms of interface and currency conversion. For instance, they don’t always allow users to deposit fiat money in exchange for crypto; users have to either already own crypto or use a centralized exchange to get crypto. It also takes longer to find someone looking to trade with you as DEX engages in peer-to-peer trade, and if liquidity is low, you may have to accept concessions on price and quickly sell or buy low-volume crypto.

Step 2: Create an Account

After you’ve chosen a cryptocurrency exchange that fulfills all your criteria, the following step is to register with the exchange using a valid email or mobile number. A link will be sent to your address, and you must click it to verify your account. Once the account is activated, you must create an elaborate password, and you’re good to go.  

Some exchanges have strict KYC and AML requirements, and to get verified, you must provide personal information such as:

• Full name
• Residential address
• Date of Birth
• ID Document. 

Sometimes, you might also need to upload a selfie or undergo video verification to finalize the process.

Once your identity verification is complete, it’s recommended to activate two-factor authentication (2FA) for an extra layer of security.

Step 3: Deposit Funds

The next step is to deposit funds into your account. Many crypto exchanges support fiat currencies like USD, EUR, etc. Simply select your preferred deposit method, such as a bank transfer, wire transfer, credit or debit card, e-wallets, PayPal, etc., and the currency you wish to deposit. Tap on “Deposit Funds,” enter the amount you want to deposit and click “Deposit.”

Some deposit methods are extremely fast, while others, depending on the amount, require a confirmation from authorities. Remember to evaluate the fees of different deposit methods since some have more significant fees than others.

• Credit or Debit Card

Linking your debit card to your crypto account is advantageous as it lets you make instant or recurring purchases, but be aware that it attracts an additional fee.

• Bank Account

Making a bank transfer from your local bank account is usually free, but you should still double-check with your exchange.

• Cryptocurrency

POR can be traded for another cryptocurrency or a stablecoin such as USDT or BUSD coin; the trading pairs vary between exchanges. So, you must search for POR on the spot market to select a pair from the list of available trading pairs. To buy POR on the Socios.com app, you must own CHZ, the native in-app cryptocurrency, and exchange those for POR Fan Tokens.

Step 4: Buy Portugal National Team Fan Token

Follow the steps below to place a market order to buy POR token instantly at the current market price: 

• Click the search bar, enter POR, and select “Buy POR” or the equivalent.
• Select a trading pair you wish to buy POR against. 
• Choose the payment method and the currency you wish to use, and input the amount of POR or the fiat amount to be spent. Most exchanges automatically convert the amount to show you how many POR tokens you’ll get.
• Double-check the transaction details and click “Confirm.”
• The POR tokens will be displayed in your balance once the transaction is processed. 

You can also place a limit order indicating that you want to buy POR at or below a specific price point. Your broker will ask you the number of coins you wish to acquire and the maximum price you’re ready to pay for each once you’ve placed an order. The coins will only appear in your wallet if your broker fulfills your order at or below your requested pricing. The broker may cancel your order at the end of the day or leave it open if the price exceeds your limit.

If you’re planning to keep your newly purchased coins for an extended period, we highly recommend securely storing them in a hardware wallet.

To trade POR on spot markets, go to the Trade page and search for the POR pairs (POR/USD, POR/USDT, etc.). Select the trading pair and check the price chart. Click “Buy POR,” select the “Market,” enter your amount or choose what portion of your deposit you’d like to spend by clicking on the percentage buttons. Confirm and click “Buy POR.”

Congratulations on adding Portugal National Team Fan (POR) tokens to your crypto portfolio! 

Step 5 (Optional): Store Portugal National Team Fan Token

While your POR tokens can be stored in your brokerage exchange wallet, experts highly recommend storing your precious coins away from exchange wallets, as those might be susceptible to hacks and interference. 

We highly recommend creating a private wallet with your own set of keys. Depending on your investing preferences, you might choose between software and hardware wallets: 

Software Wallets

If you’re looking to trade POR regularly, software or hot wallets provided by your selected crypto exchange will suit you. The strength of software wallets lies in their flexibility and ease of use. A software wallet is the most easy-to-set-up crypto wallet and lets you easily interact with several decentralized finance (DeFi) applications. However, these wallets are vulnerable to security leaks because they’re hosted online. So, to keep your private keys in a software wallet, conduct due diligence before choosing one to avoid security issues. We recommend a platform that offers 2-factor authentication as an extra layer of security.
Examples of software wallets include CoinStats Wallet, MetaMask, Coinbase Wallet, Trust Wallet, and Edge Wallet, amongst others.

Hardware Wallets

Hardware or cold wallets are usually considered the safest way to store your cryptocurrencies as they offer offline storage, significantly reducing hack risks. They are secured by a pin and will erase all information after many failed attempts, preventing physical theft. Hardware wallets also let you sign and confirm transactions on the blockchain, giving you an extra layer of protection against cyber attacks. These are more suitable for experienced users who own large amounts of tokens.
Ledger hardware wallets are arguably the most secure, letting you securely manage your digital assets. The Nano X is designed for advanced users and offers more storage space and advanced features than Ledger Nano S,  designed for crypto beginners.

Examples of cold wallets are Trezor Model T, Ledger Nano X, CoolWallet Pro, KeepKey, Ellipal Titan, and SafePal S1, amongst others. 

Step 6: (Bonus Step) Track Your POR Tokens

The crypto market is volatile, and managing your portfolio could get tricky if you hold multiple assets. Utilizing a portfolio tracker will help you keep track of the real-time performance of your POR tokens and all your crypto investments from one platform at all times. CoinStats Portfolio Tracker enables you to monitor the profit, loss, and liquidity across several exchanges.

You can also monitor the profit, loss, and liquidity of Portugal National Team Fan (POR) across several exchanges on CoinStats.

CoinStats supports over 250 cryptocurrency exchanges and over 7,000 cryptocurrencies. It offers charting tools, analytical data, advanced search features, and up-to-date news. Here you have the opportunity to connect an unlimited number of portfolios (wallets and exchanges), including:

• Binance
• MetaMask
• Trust Wallet
• Coinbase
• Kraken
• Kucoin
• Bitstamp and 500 others. 

To connect, go to the CoinStats Portfolio Tracker page and:

• Click Add Portfolio and Connect Wallet.
• Click the wallet you want to connect to (e.g., Ethereum Wallet).
• Input the wallet address and press Submit.

Conclusion

Fan tokens are relatively new, with only about a hundred different fan tokens available at the moment. However, Fan Tokens’ value, interest, and popularity, including the POR price, are expected to rise in the following months due to the international media’s attention to the exciting FIFA World Cup Qatar 2022, which will be played from November 20 to December 18. The national football teams participating in it are seeing the value of their Fan Token cryptos rise. So, this might be the right time for you to invest in POR Fan Tokens.

According to the research team of crypto exchange Huobi, top world cup Fan Tokens for the national soccer teams of Portugal (POR) and Argentina (ARG), both major contenders to win the Cup, “will be the cherries on top during the World Cup.”

Disclaimer: This article is for educational purposes, and nothing here is a piece of financial or investment advice.

Blockchain technology and Web 3 elements, such as interactive games, Fan Tokens, NFT (non-fungible token) collectibles, etc., have made the FIFA World Cup Qatar 2022 event special. The world’s most famous football teams, including Manchester City, Barcelona, Flamengo, Paris Saint-Germain, AS Roma, Atletico Madrid, Juventus, Galatasaray, Inter Milan, Arsenal, FC Porto, Corinthians, etc., have launched Fan Tokens, a new method for fans to connect with their favorite clubs and players. Fan Tokens are digital assets that provide holders access to discounts, promotions, and limited content and grant them voting rights. Fan token holders gain access to rewards and benefits and can win prizes like signed club merchandise. Fans from all over the world invest in their favorite teams to show their support for them.  While Fan Tokens are still relatively new, they’re quickly establishing themselves as the future of the sports economy.

One such token is the Lazio Fan Token (LAZIO), and today we’re bringing you a detailed guide on Lazio Fan Tokens and a quick tutorial on how to buy Lazio Fan token in a few steps on Binance.

Let’s get right to it!

What Are Lazio Fan Tokens?

The Lazio Fan Token (LAZIO) is a BEP-20 utility token launched on the Binance Smart Chain. It was created to revolutionize the fan experience for the famous Italian football club, S.S. Lazio. The partnership agreement between the Binance crypto exchange and Lazio is valued at more than 30 million euros and aims to enable every Lazio fan to be a part of the team. LAZIO is both a governance and a utility token and gives Lazio fans voting rights, allowing them to vote on club decisions and gain access to exclusive rewards, club discounts, and benefits.

Lazio Fan Token Price

The Lazio Fan Token price has suffered along with the entire crypto market, but it has held stronger than several other cryptocurrencies. LAZIO price is set by individual vendors based on available supply and demand. The price of the asset varies based on order books, volume, exchange rates, and fees of each Lazio Fan Token exchange.

The all-time high price of Lazio Fan Token was $26.75 on October 21, 2021, and the lowest price for Lazio Fan Token was $0.915594 on May 12, 2022.

The Lazio token market cap is USD 33.5 million. You can check the Lazio Fan Token current price, circulating supply, total supply, and other metrics at Lazio price on CoinStats. 

Buying Lazio Fan Token

Now, let’s look into where the world trades S.S. Lazio Fan Token. Since LAZIO has been developed on Binance, on the Binance Smart Chain, the Binance cryptocurrency exchange is the best place to buy and sell Lazio Fan Token. Binance also has more trading volume and higher liquidity than other crypto platforms, making it the best platform for purchasing Lazio Fan Tokens or other digital currencies.

Follow the steps highlighted below to buy Lazio Fan Tokens on Binance.

Step 1: Create a Binance Account

To purchase cryptocurrency on Binance, you must create an account if you don’t already have one. Binance, like many other cryptocurrency exchanges, offers a hassle-free registration with only an email address or valid mobile number. A link will be sent to your address or mobile phone, and you must click it to verify your account. Once the account is activated, you must create an elaborate password, and you’re good to go.

While Binance doesn’t have mandatory KYC and AML requirements, users must complete the KYC verification process to gain full access and increase higher deposits and withdrawal limits. You must provide personal information and a government-issued identity card to verify your account.

Once your identity verification is complete, it’s recommended to activate two-factor authentication (2FA) for an extra layer of security.

Step 2: Deposit Funds

The Binance platform allows you to buy crypto using fiat currency, cryptocurrencies, peer-to-peer trade, credit or debit card, or your bank account directly. You can pick any of the methods to deposit funds into your wallet. Consider buying a stablecoin like USDT or BUSD first, then use the currency to buy Lazio Fan Token. The minimum amount to buy Lazio Fan Token is USD 10. 

Step 3: Purchase Lazio Token

Follow the steps below to place a market order to buy LAZIO instantly at the current market price: 

• Click the search bar, enter LAZIO, and select “Buy LAZIO.”
• Select a trading pair you wish to buy LAZIO against. 
• Choose the payment method and the currency you wish to use, and input the amount of LAZIO or the fiat amount to be spent.
• Double-check the transaction details and click “Confirm.”
• The LAZIO tokens will be displayed in your balance once the transaction is processed. 

You can also place a limit order indicating that you want to buy LAZIO at or below a specific price point. Your broker will ask you the number of coins you wish to acquire and the maximum price you’re ready to pay for each coin once you’ve placed an order. The coins will only appear in your wallet if your broker fulfills your order at or below your requested pricing. The broker may cancel your order at the end of the day or leave it open if the price exceeds your limit.

If you’re planning to keep your newly purchased coins for an extended period, we highly recommend securely storing them in a hardware wallet.

To trade LAZIO on spot markets, go to the Trade page and search for the LAZIO pairs (LAZIO/USD, LAZIO/USDT, etc.). Select the trading pair and check the price chart. Click “Buy LAZIO,” select the “Market,” enter your amount or choose what portion of your deposit you’d like to spend by clicking on the percentage buttons. Confirm and click “Buy LAZIO.”

Congratulations on adding Lazio Fan Tokens to your crypto portfolio! 

Step 4 (Optional): Store Lazio Fan Token

While your LAZIO tokens can be stored in your brokerage exchange wallet, experts highly recommend storing your precious coins away from exchange wallets, as those might be susceptible to hacks and interference. 

We highly recommend creating a private wallet with your own set of keys. Depending on your investing preferences, you might choose between software and hardware wallets: 

Software Wallets

If you’re looking to trade Lazio Fan Tokens regularly, software or hot wallets provided by your selected crypto exchange will suit you. The strength of software wallets lies in their flexibility and ease of use. A software wallet is the most easy-to-set-up crypto wallet and lets you easily interact with several decentralized finance (DeFi) applications. However, these wallets are vulnerable to security leaks because they’re hosted online. So, if you want to keep your private keys in a software wallet, conduct due diligence before choosing one to avoid security issues. We recommend a platform that offers 2-factor authentication as an extra layer of security.
Examples of software wallets include CoinStats Wallet, MetaMask, Coinbase Wallet, Trust Wallet, and Edge Wallet, amongst others.

Hardware Wallets

Hardware or cold wallets are usually considered the safest way to store your cryptocurrencies as they offer offline storage, thereby significantly reducing the risks of a hack. They are secured by a pin and will erase all information after many failed attempts, preventing physical theft. Hardware wallets also let you sign and confirm transactions on the blockchain, giving you an extra layer of protection against cyber attacks. These are more suitable for experienced users who own large amounts of tokens.
Ledger hardware wallets are arguably the most secure hardware wallets letting you securely manage your digital assets. The Nano X is designed for advanced users and offers more storage space and advanced features than Ledger Nano S,  designed for crypto beginners.

Examples of cold wallets are Trezor Model T, Ledger Nano X, CoolWallet Pro, KeepKey, Ellipal Titan, and SafePal S1, amongst others. 

Step 5: (Bonus Step) Track Your LAZIO Tokens 

The crypto market is volatile, and managing your portfolio could get tricky if you hold multiple assets. Utilizing a portfolio tracker will help you keep track of your Lazio Fan Token and all your crypto investments from one platform at all times.

CoinStats offers one of the best crypto portfolio trackers in the market, helping you keep track of your Lazio Fan Token and all your crypto investments from one platform at all times.

You can also monitor the profit, loss, and liquidity of Serum (SRM) across several exchanges with the CoinStats app.

CoinStats supports over 250 cryptocurrency exchanges and over 7,000 cryptocurrencies. It offers charting tools, analytical data, advanced search features, and up-to-date news. Here you have the opportunity to connect an unlimited number of portfolios (wallets and exchanges), including:

• Binance
• MetaMask
• Trust Wallet
• Coinbase
• Kraken
• Kucoin
• Bitstamp and 500 others. 

To connect, go to the CoinStats Portfolio Tracker page and:

• Click Add Portfolio and Connect Wallet.
• Click the wallet you want to connect to (e.g., Ethereum Wallet).
• Input the wallet address and press Submit.

Conclusion

Fan tokens are relatively new, with only about a hundred different fan tokens available at the moment. However, Fan Tokens’ value, interest, and popularity are expected to rise in the following months due to the international media’s attention to the exciting FIFA World Cup Qatar 2022, which will be played from November 20 to December 18. The national football teams participating in it are seeing the value of their Fan Token cryptos rise. So, this might be the right time for you to invest in LAZIO Fan Tokens.

You can also visit our blog for more information about wallets, crypto exchanges, and tokens, such as “How to Buy Santos FC Fan Token“, “How to Buy Spain National Football Team Fan Token (SNFT)“, etc.

Disclaimer: This article is meant for educational purposes only, and nothing in this article is a piece of investment or financial advice. This is not a recommendation to buy or sell a particular digital asset. Crypto assets are highly volatile and unregulated, so users are requested to do their own research before buying crypto. 

Blockchain technology and Web 3 elements, such as interactive games, Fan Tokens, NFT collectibles, etc., have made the FIFA World Cup Qatar 2022 event special. The world’s most famous football teams, including Manchester City, Barcelona, Flamengo, Paris Saint-Germain, AS Roma, Atletico Madrid, Juventus, Galatasaray, Inter Milan, Arsenal, FC Porto, Corinthians, etc., have launched Fan Tokens, a new method for fans to connect with their favorite clubs and players.

Fan Tokens are digital assets that provide holders access to discounts, promotions, and limited content and grant them voting rights. Fans from all over the world invest in their favorite teams to show their support for them and gain access to rewards, benefits, and money-can’t-buy experiences. While Fan Tokens are still relatively new, they’re quickly establishing themselves as the future of the sports economy.

One such token is the Santos FC Fan Token (SANTOS), and today we’re bringing you a detailed guide on SANTOS Fan Tokens and a quick tutorial on how to buy Santos FC Fan Token in a few steps.

Let’s get right to it!

What Is Santos FC Fan Token (SANTOS)?

Santos FC Fan Token (SANTOS) is the Fan Token developed by Santos FC, known as Santos Futebol Clube, a Brazilian soccer team based in Vila Belmiro, So Paulo state. Santos FC is one of the most successful clubs in the country, competing in both the Paulisto – the primary state league of the State of So Paulo – and the Brasileiro – the highest level in Brazil’s football league system. The Santos FC football club is an eight-time national champion of Brazil and has won 24 titles in 10 years. What’s more, it has over 10 million social media followers. Santos has produced such talents as Pelé, Neymar, and Rodrygo.

Santos FC Fan Token was launched in 2021 on the Binance Smart Chain (BSC) and was available via Binance Launchpad from November 27, 2021, to December 28, 2021. SANTOS was developed due to the collaboration between Binance and Santos FC, aiming to boost fan interaction, establish ties between the club and fans, and draw the attention of Binance consumers.

SANTOS is a BEP-20 token that empowers fans to get more deeply involved with their preferred team. It allows fans to access exclusive rewards and limited NFT collections, match tickets, promotional meet and greet events, football training and autograph sessions, and special merchandise, such as exclusive shirts signed by club stars Marcos Leonardo and Ricardo Goulart. SANTOS also functions as a governance token, allowing owners to vote on club decisions.

With a certain amount of SANTOS, fans can access various gamification features available on the Binance Fan Token platform. Moreover, fans can demonstrate loyalty to their favorite team and donate SANTOS directly, receiving a proof-of-loyalty badge.

SANTOS Tokenomics

SANTOS Token has a maximum supply of 30,000,000 coins, with 4,287,667 $SANTOS in circulation (~15% of the total supply) as of November 2022.

As the FIFA World Cup 2022 in Qatar completes its first week, all the football Fan Token prices, including the Santos FC Fan Token price, are skyrocketing.

You can check the Santos FC Fan Token current price, circulating supply, market cap, 24-hour trading volume, and other metrics, and get updates on live SANTOS USD price at SANTOS price on CoinStats, one of the best platforms around.

How to Buy SANTOS?

Step #1: Select a Crypto Exchange

SANTOS FC Token (SANTOS) tokens can be purchased on several cryptocurrency exchanges. View the trading platforms supporting SANTOS on the CoinStats market page. Compare the exchanges’ security, user experience, fee structure, supported currencies, etc., to choose the one with the features you want, such as low transaction fees, a straightforward interface, 24/7 customer service, etc.

Also, consider whether the cryptocurrency exchange is licensed by the Financial Industry Regulatory Authority (FINRA) and accepts buying SANTOS or other crypto with your preferred payment method and currencies.

Step #2: Create an Account

After you’ve decided on a cryptocurrency exchange that meets your requirements, the next step is to register with the exchange using a legitimate email or mobile number. You’ll receive an email with a link that you must click to validate your email address. Once the account is activated, you must create a complex alpha-numeric password to keep your account safe.

Some exchanges have strict KYC and AML regulations, and you must provide personal information such as:

• Full name
• Residential address
• Date of Birth
• ID Document. 

To complete the verification process, you may also be required to provide a selfie or go through video verification.

Once your identity has been verified, it’s recommended to use two-factor authentication (2FA) for an added layer of security.

Step #3: Deposit Funds

The next step is to fund your account. Many cryptocurrency exchanges accept fiat currencies such as USD, EUR, etc. Simply choose your desired deposit method, such as a bank transfer, wire transfer, credit or debit card, e-wallet, PayPal, etc., and the currency you want to deposit. Tap “Deposit Funds,” input the amount you wish to deposit and click “Deposit.”

Some deposit options are very fast, while others require confirmation from authorities depending on the amount. Remember to compare the fees of different deposit options because some have higher fees than others.

• Credit or Debit Card

Linking your debit or card to your cryptocurrency account is advantageous because it allows you to make instant or recurring purchases, but be aware that it incurs an additional fee.

• Bank Account

Bank transfers from your local bank accounts are usually free, but you should double-check with your exchange.

Step #4: Buy SANTOS

To place a market order to buy SANTOS at the current market price, follow the steps below:

• Go to the search bar, enter SANTOS, and select “Buy SANTOS” or the equivalent.
• Choose the payment method and currency you want to use, then enter the number of SANTOS you wish to buy or the fiat currency you want to spend. Most exchanges will immediately convert the amount to show you how many SANTOS FC tokens you’ll get.
• Check the transaction details again before clicking the “Confirm” button.
• Once the transaction is completed, the SANTOS FC tokens will be added to your balance.

Congratulations on adding SANTOS FC tokens to your portfolio! 

CoinStats offers one of the best crypto portfolio trackers in the market, helping you keep track of your Lazio Fan Token and all your crypto investments from one platform at all times.

Step 5 (Optional): Store Santos FC Fan Token

While your SANTOS tokens can be stored in your brokerage exchange wallet, experts highly recommend storing your precious coins away from exchange wallets, as those might be susceptible to hacks and interference. 

We highly recommend creating a private wallet with your own set of keys. Depending on your investing preferences, you might choose between software and hardware wallets: 

Software Wallets

If you’re looking to trade SANTOS regularly, software or hot wallets provided by your selected crypto exchange will suit you. The strength of software wallets lies in their flexibility and ease of use. A software wallet is the most easy-to-set-up crypto wallet and lets you easily interact with several decentralized finance (DeFi) applications. However, these wallets are vulnerable to security leaks because they’re hosted online. So, to keep your private keys in a software wallet, conduct due diligence before choosing one to avoid security issues. We recommend a platform that offers 2-factor authentication as an extra layer of security.

Examples of software wallets include CoinStats Wallet, MetaMask, Coinbase Wallet, Trust Wallet, and Edge Wallet, amongst others.

Hardware Wallets

Hardware or cold wallets are usually considered the safest way to store your cryptocurrencies as they offer offline storage, significantly reducing hack risks. They are secured by a pin and will erase all information after many failed attempts, preventing physical theft. Hardware wallets also let you sign and confirm transactions on the blockchain, giving you an extra layer of protection against cyber attacks. These are more suitable for experienced users who own large amounts of tokens.

Ledger hardware wallets are arguably the most secure, letting you securely manage your digital assets. The Nano X is designed for advanced users and offers more storage space and advanced features than Ledger Nano S,  designed for crypto beginners.

Examples of cold wallets are Trezor Model T, Ledger Nano X, CoolWallet Pro, KeepKey, Ellipal Titan, and SafePal S1, amongst others. 

Pro-tip: You can also stake your SANTOS on Binance Earn to earn passive income.

Step 6: (Bonus Step) Track Your SANTOS Tokens

The crypto market is volatile, and managing your portfolio could get tricky if you hold multiple assets. Utilizing a portfolio tracker will help you keep track of the real-time performance of your SANTOS tokens and all your crypto investments from one platform at all times. CoinStats Portfolio Tracker is one of the best crypto portfolio trackers in the market and enables you to monitor the profit, loss, and liquidity of Santos FC Fan Token across several exchanges.

CoinStats supports over 250 cryptocurrency exchanges and over 7,000 cryptocurrencies. It offers charting tools, analytical data, advanced search features, and up-to-date news. Here you have the opportunity to connect an unlimited number of portfolios (wallets and exchanges), including:

• Binance
• MetaMask
• Trust Wallet
• Coinbase
• Kraken
• Kucoin
• Bitstamp and 500 others. 

To connect, go to the CoinStats Portfolio Tracker page and:

• Click Add Portfolio and Connect Wallet.
• Click the wallet you want to connect to (e.g., Ethereum Wallet).
• Input the wallet address and press Submit.

Closing Thoughts

The Fan Token is the entry code to a modern iteration of the classic supporters’ program that doesn’t charge additional fees or subscriptions (you just pay once) and allows fans to participate in organizational involvement for the first time by casting polls via the Socios.com app.
Santos FC Fan Token is performing well in the cryptocurrency market and is among the leading cryptos among other Fan Tokens. We’re guessing it will bring huge smiles to their investors’ faces in the upcoming years.

You can also visit our blog for more information about wallets, crypto exchanges, and tokens, such as “How to Buy Spain National Football Team Fan Token“, “How to Buy LAZIO Tokens“, etc.

Investment Advice Disclaimer

This content, including any information contained therein, is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any security, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice. Past performance is not a reliable indicator of future performance. When it comes to buying crypto, the value of your investment can go down as well as up, and you may not get back the amount you invested.

Cryptocurrency prices are highly volatile; do your independent research, obtain your own advice, and only invest what you can afford to lose. You should carefully consider your investment experience, financial situation, objectives, and risk tolerance and consult an independent financial adviser before making any investment. There are significant risks involved in trading CFDs, stocks, and cryptocurrencies. Between 74-89% of retail investor accounts lose money when trading CFDs. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant regulators’ websites before making any decision.

StormX is a decentralized platform that runs on the Ethereum network and allows users to earn popular cryptocurrencies such as Bitcoin, Ethereum, the stablecoin Dai, and also StormX’s own token, STMX while shopping online. The idea is that people enab…

Serum is a permissionless decentralized exchange and DeFi ecosystem built on the Solana blockchain. It brings unprecedented speed and low transaction costs to decentralized finance and enables cross-chain swaps. The Serum ecosystem uses an on-chain ce…

Fan Tokens are a new invention that connects fans to their favorite teams by giving them a voice and making them feel like they own part of their favorite sports club. Sports clubs use Fan Tokens to create unique fan experiences through cryptocurrencies and increase the level of engagement with fans.

The world’s most famous football teams, including Manchester City, FC Barcelona, Flamengo, Paris Saint-Germain, AS Roma, Atletico Madrid, Juventus, Galatasaray, Inter Milan, Arsenal, FC Porto, and Corinthians, have launched Fan Tokens through Socios.com. The Socios app is a product of Chiliz that lets fans acquire tokenized voting rights in their favorite clubs and engage with their teams and provides token holders access to unique rewards and exclusive promotions.

If you’re interested in investing in Fan Tokens, you must first purchase Chiliz CHZ tokens that fuel the Socios platform and use them to purchase and trade different Fan Tokens on Socios.com.

Read on for our quick step-by-step guide on where and how to buy CHZ.

Let’s get started!

What Is Chiliz?

Chiliz (CHZ) prides itself on being “the world’s premier blockchain financial service for sports and entertainment.” It’s a popular cryptocurrency for sports tokenization and the most popular Fan Token platform to date. Chiliz is famous for the invention of the Fan Token and is the first sports-based crypto exchange where fans can trade customized Fan Tokens and participate in club-based surveys and pools.

Socios.com is the first consumer-facing product of Chiliz. It’s a mainstream app that enables fans to get tokenized voting rights in their favorite clubs and engage with their teams. It also grants access to unique rewards, experiences, prediction games, and challenges.  

Socios.com connects clubs to their fan bases, securing additional revenue streams that are digital, secure, transparent, and wholly integrated with the real fan experience. It allows interested teams to issue Fan Tokens.

CHZ is the digital currency for the Chiliz and Socios.com platforms and the native ERC20 utility token for the Chiliz network secured by the Ethereum blockchain.

Chiliz was founded by Alexandre Dreyfus, the company’s current CEO, in 2017. The Chiliz token’s total supply is 8,888,888,888 tokens, with a circulating supply of 5,344,064,580 tokens. Check the Chiliz token current price and other metrics on CHZ Price on CoinStats.

Chiliz (CHZ) tokens were launched in 2019 and have since become one of the industry’s biggest earners, giving returns as high as 4000 percent. As a result, CHZ has become very popular among investors and is available for buying, selling, or trading on all major crypto exchanges across the world.

Some of the best crypto exchanges where you can buy, sell, or trade Chiliz (CHZ) tokens are Binance, Kraken, Huobi Global, Kucoin, Coinbase, Uniswap, etc.

Follow our step-by-step buying guide below to buy CHZ tokens hassle-free.

Step #1: Select a Crypto Exchange

Several leading cryptocurrency exchanges offer Chiliz (CHZ), so visit the market page on CoinStats to view the exchange platforms supporting Chiliz. Compare the exchanges’ security, user experience, fee structure, supported crypto assets, deposit methods, etc., to choose the one with the characteristics you need, such as affordable transaction fees, an intuitive platform, round-the-clock customer service, etc. Also, consider whether the cryptocurrency exchange is regulated by the Financial Industry Regulatory Authority (FINRA) and allows buying crypto using your preferred payment method.

In the crypto world, any trader is confronted with the initial choice between centralized and decentralized crypto exchanges, so let’s look into the details of each type below.

Centralized Cryptocurrency Exchange

A centralized crypto exchange or CEX, such as Coinbase, eToro, Binance, etc., is governed by a centralized system and charges specific fees for using their services. Most crypto trading takes place on centralized exchanges, allowing users to convert their fiat currencies directly into crypto easily. Centralized exchanges require users to follow KYC (know your customer) and AML (anti-money laundering) rules by providing information and personal identification documents. However, a CEX holds your digital assets on its platform while trades go through – raising the risk of hackers stealing the assets.

Decentralized Cryptocurrency Exchange

On the other hand, a decentralized exchange (DEX), like Uniswap, SushiSwap, Shibaswap, etc., is not governed by any central authority; instead, it operates over blockchain and charges no fee except for the gas fee applicable on a particular blockchain, i.e., on the Ethereum blockchain. Decentralized exchanges use smart contracts to let people trade crypto assets without needing regulatory authority. They deploy an automated market maker to remove any intermediaries and give users complete control over their funds. Decentralized exchanges are less user-friendly in terms of interface and currency conversion. For instance, they don’t always allow users to deposit fiat money in exchange for crypto; users have to either already own crypto or use a centralized exchange to get crypto. It also takes longer to find someone looking to trade with you as DEX engages in peer-to-peer trade, and if liquidity is low, you may have to accept concessions on price and quickly sell or buy low-volume crypto.

Step #2: Create an Account

After you’ve chosen a cryptocurrency exchange that fulfills all your criteria, the following step is to register with the exchange using a valid email or mobile number. So, for example, if you want to buy Chiliz (CHZ) on Binance, you must create a Binance account. The benefits of purchasing Chiliz (CHZ) here are the lowest fees and higher liquidity. Binance, like many other cryptocurrency exchanges, offers a hassle-free registration with only an email address or valid mobile number. A link will be sent to your address or mobile phone, and you must click it to verify your account. Once the account is activated, you must create an elaborate password, and you’re good to go.

While Binance doesn’t have mandatory KYC and AML requirements, users must complete the KYC verification process to gain full access and increase higher deposits and withdrawal limits. You must provide personal information and a government-issued identity card to verify your account.

Once your identity verification is complete, it’s recommended to activate two-factor authentication (2FA) for an extra layer of security.

Step #3: Deposit Funds

The next step is to deposit funds into your account. Many crypto exchanges support fiat currencies like USD, EUR, etc. Simply select your preferred deposit method, such as a bank transfer, wire transfer, credit or debit card, e-wallet, PayPal, etc., and the currency you wish to deposit. Tap on “Deposit Funds,” enter the amount you want to deposit and click “Deposit.”

Some deposit methods are extremely fast, while others, depending on the amount, require a confirmation from authorities. Remember to evaluate the fees of different deposit methods since some have more significant fees than others.

• Credit or Debit Card

Linking your credit/debit card to your crypto account is advantageous as it lets you make instant or recurring purchases, but be aware that it attracts an additional fee.

• Bank Account

It’s usually free to make a bank transfer from your local bank account, but you should still double-check with your exchange. Also, sometimes, a bank transfer can take longer to process. 

• Cryptocurrency

Chiliz (CHZ) can be traded for another cryptocurrency or a stablecoin; the trading pairs vary between exchanges. So, you must search for CHZ on the spot market to select a pair from the list of available trading pairs.

Step #4: Buy Chiliz

Follow the steps below to place a market order for buying Chiliz instantly at the current market price: 

• Click the search bar, enter CHZ, select Chiliz, then “Buy CHZ” or the equivalent.
• Select a trading pair you wish to purchase Chiliz (CHZ) against. 
• Choose the payment method and the currency you wish to use, and input how much Chiliz you want to buy or the fiat amount to be spent. Most exchanges automatically convert the amount to show you how many CHZ tokens you’ll get.
• Double-check the transaction details and click “Confirm.”
• The Chiliz CHZ tokens will be displayed in your balance once the transaction is processed. 

You can also place a limit order indicating you want to purchase Chiliz at or below a specific price point. Your broker will ask you the number of coins you wish to acquire and the maximum price you’re ready to pay for each once you’ve placed an order. The coins will only appear in your wallet if your broker fulfills your order at or below your requested pricing. The broker may cancel your order at the end of the day or leave it open if the price exceeds your limit.

If you’re planning to keep your newly purchased coins for an extended period, we highly recommend securely storing them in a secure wallet.

To start buying Chiliz on the spot market, go to the Trade page and search for the CHZ pairs (CHZ/USD, CHZ/USDT, etc.). Select the trading pair and check the price chart. Click “Buy CHZ,” select the “Market,” enter your amount or choose what portion of your deposit you’d like to spend by clicking on the percentage buttons. Confirm and click “Buy CHZ.”

Congratulations on purchasing CHZ tokens! 

Step #5 (Optional): Store CHZ

While your SRM tokens can be stored in your cryptocurrency exchange wallet, experts highly recommend storing your precious coins and private key away from exchange wallets, as those might be susceptible to hacks and interference. Besides, the recent case with the FTX centralized exchange shows that companies holding crypto for customers can make investment decisions that end in disaster, and there’s no explicit guarantee that customers will get their assets back.

We highly recommend creating a private cryptocurrency wallet with your own set of keys. Depending on your investing preferences, you might choose between software and hardware wallets: 

Software Wallets

If you’re looking to trade Chiliz regularly, software or hot wallets provided by your selected crypto exchange will suit you. The strength of software wallets lies in their flexibility and ease of use. A software wallet is the most easy-to-set-up crypto wallet and lets you easily interact with several decentralized finance (DeFi) applications. However, these wallets are vulnerable to security leaks because they’re hosted online. So, to keep your private keys in a software Chiliz wallet, conduct due diligence before choosing one to avoid security issues. We recommend a platform that offers 2-factor authentication as an extra layer of security.
Examples of software wallets include CoinStats Wallet, MetaMask, Coinbase Wallet, Trust Wallet, and Edge Wallet, amongst others.

Pro-tip: The CoinStats Wallet not only ensures your assets’ security but can also be used to access DeFi services and earn interest on your assets. Moreover, it comes with a portfolio tracker enabling you to track all your assets stored across various exchanges from one platform. 

Hardware Wallets

Hardware or cold wallets are usually considered the best way to securely store your cryptocurrencies as they offer offline storage, thereby significantly reducing the risks of a hack. They are secured by a pin and will erase all information after many failed attempts, preventing physical theft. Hardware wallets also let you sign and confirm transactions on the blockchain, giving you an extra layer of protection against cyber attacks. These are more suitable for advanced traders with large amounts of tokens.
Ledger hardware wallets are arguably the most secure hardware wallets letting you securely manage your digital assets. The Nano X is designed for advanced users and offers more storage space and advanced features than Ledger Nano S,  designed for crypto beginners.

A hardware wallet is more expensive than a hot wallet, with prices ranging between  $50 – $200.

Examples of cold wallets are Trezor Model T, Ledger Nano X, CoolWallet Pro, KeepKey, Ellipal Titan, and SafePal S1, amongst others. 

Step #6 (Bonus Step): Track Chiliz Tokens

The crypto market is volatile, and managing your portfolio could get tricky if you hold multiple assets. Utilizing a portfolio tracker will help you keep track of your Chiliz tokens and all your crypto investments from one platform at all times. CoinStats offers one of the best crypto portfolio trackers in the market.

You can also monitor the profit, loss, and liquidity of Chiliz (CHZ) across several exchanges on CoinStats.

CoinStats supports over 250 cryptocurrency exchanges and over 7,000 cryptocurrencies. It offers charting tools, analytical data, advanced search features, and up-to-date news. Here you have the opportunity to connect an unlimited number of portfolios (wallets and exchanges), including:

• Binance
• MetaMask
• Trust Wallet
• Coinbase
• Kraken
• Kucoin
• Bitstamp and 500 others. 

To connect, go to the CoinStats Portfolio Tracker page and:

• Click Add Portfolio and Connect Wallet.
• Click the wallet you want to connect to (e.g., Ethereum Wallet).
• Input the wallet address and press Submit.

Final Thoughts

Although the Chiliz token’s price has decreased significantly in the past year, it was simply the result of the crypto bear market that has been brutal to all tokens, even Bitcoin. To sum up, Chiliz CHZ can be a good investment due to the growing popularity of Fan Tokens with the FIFA World Cup playing now. Also read: “Fan Tokens for FIFA World Cup 2022” and “What Are Fan Tokens“.

Read our CoinStats guide, “What Is DeFi,” to gain a fundamental understanding of Decentralized Finance, and see our “Crypto Portfolio Trackers” to learn more about the best crypto portfolio trackers in the market.

Investment Advice Disclaimer: The information contained on this website is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any securities, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice. Any use or reliance on our content is solely at your own risk and discretion.

Cryptocurrency is a highly volatile market, do your own research, consult your financial advisor, and only invest the money you can afford to lose. Performance is unpredictable, and the past performance of Chiliz is no guarantee of its future performance.

The FIFA World Cup 2022, the world’s most widely-watched sports event, offers an all-new experience to fans. It empowers them not only to experience iconic moments but also to own them by purchasing NFT collectibles featuring the images and history of…

Living without CEX can be frustrating, right? Well, it might not be as tough as you might think. In fact, you might just forget about it after a while. 

Not convinced yet? In this article, we’ll highlight the differences between centralized an…

These are rekt times for crypto. We’re inviting you to go all out with the doom and celebrate the melancholy mood with some great artwork 🧡

CoinStats is taking over Rekt WTF, a mock collection of 9997 NFTs featuring ex-crypto giants tha…

Innovation is the lifeblood of any industry or company. The DeFi ecosystem constantly witnesses brilliant innovations aimed at solving the excesses of traditional finance and other projects within the space.

Today’s article focuses on one stellar innovation that bridges two worlds (centralized and decentralized exchanges) to create an optimized user experience for interested parties. Let’s take a deep dive into IDEX Exchange.

What Is IDEX?

IDEX is a decentralized exchange with centralized exchange components that speed up the network while preserving its decentralized nature. Both Ethereum and Binance Smart Chain are used to host the platform. Similar initiatives employ the automated market maker methodology to carry out trades on a DEX, whereas IDEX takes a different track.

The order book model and an automated market maker are combined in IDEX, which bills itself as the first hybrid liquidity DEX. It combines the functionality and traits of a conventional order book model with the safety and liquidity of an AMM. By combining an off-chain trading engine with an on-chain deal settlement, IDEX adopts a novel approach to decentralized exchange. This has various advantages for users.

This strategy eliminates unsuccessful trades and lost money on gas expenses, improving the trading experience overall. Due to the fast trade execution, users can trade immediately without waiting for previous trades to finalize, making front-running or sandwich assaults impossible. Limit order capability enables executing more sophisticated order types and trading techniques, creating the potential for arbitrage with other exchanges.

The stop-loss mechanism is one of the functions IDEX on BSC offers, typically seen on centralized exchanges. As a recent addition to the IDEX Multichain project, IDEX is now accessible on Polkadot.

Users can swap tokens supported by Ethereum, Polkadot, and Binance Smart Chain. The project’s major objective is to make it possible to perform and process thousands of transactions in a matter of seconds. The utility token for the exchange is called IDEX, and nodes can stake it to ratify transactions on the off-chain ledger.

Who Are the Founders of IDEX?

In 2017, Aurora was the name given to the company that would later become IDEX. Alex Wearn and Philip Wearn co-founded the project. Aurora’s 2019 rebranding as IDEX aimed to establish and grow the first real-time non-custodial exchange that blends decentralization and a centralized system for matching orders.

Alex Wearn, the CEO and co-founder, and Phil Wearn, the COO, both have invaluable experience in the tech business. Alex Wearn is a Kellogg School of Management graduate and has previously worked for prominent corporations like Amazon, IBM, and Adobe. Phil Wearn is an entrepreneur with a background in accounting who also holds a degree in astronautical engineering.

The project aims to give users access to banking and financial tools and services for real-time crypto exchanges on various platforms, including Ethereum, Binance Smart Chain, Polkadot, and others that will be included in the future.

What Makes IDEX Unique?

An order book model and an automated market maker are combined in IDEX to create a distinctive strategy. IDEX uses an off-chain trading engine for deal execution that matches the performance of centralized exchanges and ensures sequencing. Trades are processed in an off-chain order book and do not appear on-chain until it is matched and executed.

By doing this, users can avoid additional network fees for placing and canceling orders. Additionally, as placements are executed in real-time, more sophisticated market-making and trading methods, including stop-loss, post-only, and fill-or-kill, are possible.

To show AMM liquidity in the order book model, the automated market maker displays both virtual and actual limit orders in the order book to ensure liquidity. Orders are typically settled using either automated market makers or a mix of automated market makers and limit order liquidity.

To decentralize fund custody and trade settlement, IDEX leverages smart contracts. The smart contract executes trades off-chain but settles them on-chain after a delay in order to support the order book concept. The smart contract serves as an escrow until the settlement is complete and prohibits funds transfer.

Additionally, trades are sequential, and a unique smart contract feature ensures that funds cannot be restricted forever. Because the smart contract enforces ownership and authorization, users maintain custody and can conduct transactions without needing extra infrastructure.

What Is IDEX Token?

IDEX is the utility token of the IDEX exchange. It serves as the fuel for all operational activities within the Exchange. Its utility and frequency of usage by users on the IDEX protocol also help to secure IDEX Exchange. 

How Many IDEX Tokens Are in Circulation?

There are 1,000,000,000 IDEX in existence, however, only 674,482,177 are in use right now. The token supply is constrained, just like Bitcoin and many other cryptocurrencies. Since there is a limited quantity, IDEX coins cannot lose value due to inflation, and once the supply is depleted, no more IDEX coins should be produced.

IDEX token distribution is as follows:

• 40% – market maker rewards, marketing campaigns, and airdrops
• 25% – core team members 
• 10% – IDEX members
• 10% – future employee token pool
• 10% – future use
• 5% – operational expenses

If a user has 10,000 IDEX or more, they can additionally run a lightweight node and stake their IDEX. 

What Gives IDEX Token Value?

The number of users actively using IDEX, how often they use it, and the technology, features, tools, and scalability of IDEX all contribute to its intrinsic value. Since IDEX is subject to rapid adjustments, much like other cryptocurrencies, the intrinsic value frequently differs from the market price. Due to the volatility and market speculation surrounding cryptocurrencies, IDEX is sometimes overbought or underbought.

IDEX’s use case—exchanging different cryptocurrencies—and the system’s capacity to provide customers with expected services determine how lucrative the platform is.

The platform also derives value from its technological prowess and utility. IDEX, a project that blends centralized and decentralized characteristics while maintaining its integrity as a DEX, is a useful addition to the DEX market.

IDEX Features

Below are some of the key characteristics of IDEX Exchange:

• Sophisticated security and transparency.
• Crypto-based financial services and tools
• Ethereum, Polkadot, and Binance Smart Chain (BSC) support.
• Peer-to-peer trading.
• Dependable customer service.
• Numerous trading options
• Super fast trading using cryptocurrencies for investors.
• Layer-2 solution.
• A centralized exchange that offers customers the security of the decentralized exchange.
• Multichain functionality 
• High returns for stakers on IDEX products 
• User-friendly interface 

Other tokens supported by the IDEX exchange include Chainlink, Celsius, Everex, Quant, Etherbase Coin, Flexacoin, and Fantom, to mention a few. Additionally, this cryptocurrency trading platform offers Aura tokens, which give account holders the option to stake and support the IDEXD trading network.

Users who utilize IDEX exchange have total control over their money, which can only be accessed with the owner’s consent.

How Does IDEX Work?

To enable instant execution, IDEX works as an order book exchange while the project mixes components of centralized and decentralized exchanges. While IDEX employs order books and centralizes the method for matching orders on the network, the bulk of DEX platforms on the market are AMMs.

IDEX employs Layer-2 Optimistic Rollups to provide the greatest functionality and speed on Ethereum. The Optimistic Rollup is a scaling technique that employs faster off-chain transaction processing while maintaining the decentralized nature of the main network, IDEX, in this case.

Ethereum users were prone to experiencing network congestion, failed transactions, and increased gas fees under the proof-of-work model. But Ethereum’s transition to proof-of-stake will greatly help reduce hassle and costs. Although, IDEX still uses Layer 2 solutions and Merkle trees to reduce congestion and maintain reasonable gas fees. On BSC, off-chain infrastructures and matching engines, such as the Ethereum Virtual Machine (EVM), are used to scale and allow quick transaction execution. 

IDEX and Proof-of-Stake

IDEX uses the proof-of-stake consensus mechanism to protect the network and verify transactions with staking and Node operators.

Since proof-of-stake uses less power, is more scalable, and can avoid network congestion, it outshines Proof of Work as a consensus process. IDEX mixes the decentralized proof-of-stake protocol with centralized components to match orders from order books and process transactions in batches.

IDEX and Staking

To maintain the platform’s financial stability, IDEX launched its IDEX staking program and built a trustworthy network that allowed stakers to earn 25% in ETH. Stakers can buy tokens and make contributions to the IDEX staking program, which aids in keeping the IDEX exchange infrastructure operational.

Is IDEX Safe?

In contrast to centralized exchanges, which rely on the dubious security of centralized companies, the IDEX network secures users’ crypto assets with smart contracts. The network also uses external data to interact; for example, IDEX connects to networks like Ethereum and Binance Smart Chain, which require oracles as an extra security measure.

The network rewards Node operators through automation. Node operators are compensated as essential network members for validating transactions and other network functions. The utility token IDEX, which node operators must stake to run the network, is also used to secure the protocol.

IDEX 2.0

The original iteration of IDEX Exchange, launched in 2019, featured centralized management and the advantages of decentralized exchanges. IDEX 2.0 was introduced in the final trimester of 2020, having two key enhancements added to its catalog:

• High-performance offline infrastructure with centralized exchange experience for dealers.
• Off-chain smart contracts that improve the user experience for scalability and cost-effectiveness.

Replicators and Validators

Replicators and validators are staking nodes; however, validators audit transactions while replicators distribute API data. In contrast to validators, whose minimum stake has not yet been determined and which must be deposited in the staking contract, replicators require a minimum stake of 10,000 IDEX to be deposited in the IDEX network or wallet are immune from slashing. Both kinds of nodes generate IDEX trading fees. However, validators also have the opportunity to generate fraud rewards.

IDEX Trade Fees and Limits

0.2% for takers and 0.1% for makers. The minimum withdrawal is 0.2 ETH, while the minimum trading orders are 1 ETH for takers and 0.5 ETH for makers.

Bottom Line

A non-custodial DEX is now available to users everywhere, thanks to IDEX, a special exchange that blends centralization and decentralization. Instant trade execution and quick transactions are also made possible by IDEX, the first DEX of its kind that lets users preserve complete ownership over their digital currency while protecting the security of balances on the network.

IDEX Exchange is one of the safest places to trade in today’s rapidly evolving world of technology and digital currency. For investors wishing to increase the return on their money by trading and staking cryptocurrency, IDEX offers a secure platform and affordable option.

The most long-awaited event for all soccer fans, FIFA World Cup, is here, and we are delighted to have you celebrate it with CoinStats. Here’s how you can score and make your team proud. 

This November 20th to December 18th, you’ll get to …

Fan Token is a new type of digital asset that connects sports fans to their favorite sports team by giving them a voice and making them feel like they own part of their favorite sports club. Football clubs globally use football Fan Tokens to create un…

The most recent collapse of FTX Exchange, as well as platforms such as Celsius, BlockFi, and Voyager Digital, has resulted in strong disbelief in the liquidity of centralized crypto custodians – and for good reason. 

Definition
Proof-of-reser…

The FIFA World Cup Qatar 2022 kicks off on November 21, with 32 national teams competing across 64 matches to determine a winner. Blockchain technology and Web 3 elements, such as interactive games, fan tokens, collectibles, etc., have made this event special. OKX, the second-largest crypto exchange by trading volume, launched its OKX Football Festival, which consists of prize pool money of more than $3 million in tokens, limited edition NFTs, and exclusive experiences. Crypto.com and Algorand officially partnered with FIFA for the World Cup.

The Chiliz/Socios.com platform has collaborated with national teams to issue official fan tokens. Chiliz is a popular cryptocurrency for sports tokenization, fueling the world’s first scalable sports engagement and rewards platform – Chiliz.net. It’s also the first sports-based crypto exchange enabling fans to trade customized fan tokens and participate in club-based surveys and pools. Chiliz’s clients include Barcelona, Juventus, and Arsenal, while Lionel Messi is its global brand ambassador.

Fan tokens are a new method for fans to connect with their favorite clubs and players. They are digital assets that provide holders access to discounts, promotions, and limited content and grant them voting rights. Fan token holders gain access to rewards and benefits and can win prizes like signed club merchandise. Fans from all over the world invest in their favorite teams to show their support for them. While fan tokens are still relatively new, they’re quickly establishing themselves as the future of the sports economy. Here is our dive deep into Fan Tokens, what they are, and how they work.

So, what are the best fan tokens to invest in 2022? Let’s look at the specifics.

Everything You Need to Know About Fan Token

A fan token is a digital asset created using blockchain. It gives holders access to services provided by sports organizations to their supporters through the Socios.com app. Socios is an app that lets fans acquire tokenized voting rights in their favorite clubs and gives them a platform to join and feel like a team. The app allows fans to engage with their teams and provides access to unique rewards.

Socios allows interested teams to issue fan tokens, giving holders the ballot rights to participate in decision-making, opinion polls, and surveys. For example, Arsenal Football Club fans can vote on merchandise designs, in-game banners, etc., through the AFC fan token while receiving rewards and unique experiences.

Hundreds of sports teams worldwide have partnered with Socios.com to create innovative ways to engage their fans.

As the FIFA World Cup Qatar 2022 draws closer, the value of fan tokens associated with national football teams rises.

Reasons Behind the Fan Token Mania

Availability of Funds: The new frenzy is being fueled by the availability of extra capital and the urge to invest. The upcoming World Cup and the related buzz have motivated such investors to enter the meme token sector, resulting in the rise of fan token prices.

Meet and Greet the Teams: Another reason for the popularity of fan tokens is the advantages for token holders. Fans not only gain access to special events but can also interact with their teams, which was previously impossible. In this way, fan tokens provide their holders with a one-of-a-kind opportunity to meet and greet their favorite team’s players. This is the fundamental appeal of fan tokens.

Profit from Winning Teams: Fan tokens are an alternative to online betting. It is because tokens representing national teams with a strong likelihood of winning the FIFA World Cup are more likely to gain value than tokens representing competitive teams. As a result, these tokens are becoming increasingly popular among online investors expecting to profit after the finals.

Fan Tokens Use Cases

Fan tokens are utility tokens issued by sports teams and are available on cryptocurrency exchanges such as Phemex. Typically, the team establishes a price for the token and its value changes based on the market or noteworthy events. For example, if Manchester City wins the Premier League, their token value will most likely increase as well!

If you’re a fan token holder, you’re in luck! Token holders have several privileges, such as voting rights, special products, and even VIP access to specific events. Typically, you can vote on Tour Bus designs, merchandising designs, or game venues.

Top FIFA World Cup Fan Tokens by Market Capitalization

With the FIFA World Cup 2022 in the corner, fan tokens have spiked in volume. Fans worldwide invest in their favorite teams to demonstrate their unwavering support. So, what are the best-performing fan tokens in terms of live market cap?

1. Portugal National Team Fan Token (POR)

Portugal National Team Fan Token (POR/USDT) is the most popular fan token in 2022. They have ranked #1 in the fan token favorites due to the massive rise in trading volume. This is Portugal’s ninth year in the World Cup, with their best finish of third place in 1966.

Check the Portugal National Team Fan Token (POR) live price, 24h trading volume, market cap of $13.3M, etc., on CoinStats, one of the best crypto platforms around.

2. Spain National Football Team Fan Token (SNFT)

The next fan token is the Spain National Fan Token (SNFT/USDT). Spain was the World Champion in 2010 and 2014 and remained a fan favorite. The team is in Group E alongside another great German football squad, and fans are now waiting to see who will do better in their respective group rounds.

SNFT’s token price increased by almost 1000% earlier last month. It hit an all-time high of $0.7783 and is now trading at 48.53% of its ATH. Check the SNFT current price, market cap, daily trading volume, etc., on CoinStats.

3. Argentine Football Association Fan Token (ARG)

Argentina, another fan-favorite team, has the third most popular fan token. Argentina has two World Cup titles and finished second in 2014. Lionel Messi, a fan favorite, is now playing for Argentina and has stated that this will be his final year with FIFA. Fans worldwide rushed to invest in their fan tokens to express their overwhelming support and wish for a spectacular result.

The Argentine Football Association Fan Token (ARG) is its official fan token and has increased by over 1000% earlier in August.

4.  Brazil National Football Team Fan Token (BFT)

Brazil National Football Team is one of the world’s most popular teams with its Fan Token (BFT/USDT). It’s the most successful World Cup team, having won five times in World Cup history and being the only team to have competed in all World Cups. The performance of their token is also nothing short of remarkable.

5. Peruvian National Football Team Fan Token (FPFT)

The Peruvian National Football Team Fan Token (FPFT) ranks fifth in our analysis. Although their hopes to enter the World Cup were halted by Australia, their fan token remained strong.

Closing Thoughts

Fan tokens are relatively new, with only about a hundred different fan tokens available at the moment, among them Santos FC Fan Token, the Brazil National Football team Fan Token, and FC Barcelona. While the tokens don’t represent ownership of national teams, they provide holders access to several fan-specific perks. This is a relatively small niche sector within the cryptocurrency market, and most tokens have small market capitalizations.

Fan tokens’ value, interest, and popularity are expected to rise in the following months due to the international media’s attention to the exciting FIFA World Cup Qatar 2022, which will be played from November 20 to December 18. The national football teams participating in it are seeing the value of their fan token cryptos rise.
You’re welcome to visit our CoinStats blog to get a broader perspective on decentralized finance and how it seeks to empower people. You can also read other articles, such as What Is DeFi, explore our in-depth buying guides on various cryptocurrencies, such as What Is DeFi Staking, How to Stake MATIC, How to Stake Ethereum, How to Buy Cryptocurrency, and learn more about wallets and exchanges, portfolio trackers, etc.

Investment Advice Disclaimer

This content, including any information contained therein, is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any security, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice.

If you’re a huge sports fan, you’ve surely heard about Fan Tokens, a new invention that connects fans to their favorite teams by giving them a voice and making them feel like they own part of their favorite sports club. In other words, sports clubs use cryptocurrency Fan Tokens to create unique fan experiences through cryptocurrencies and increase the level of engagement with fans.
The world’s most famous football teams, including Manchester City, Barcelona, Flamengo, Paris Saint-Germain, AS Roma, Atletico Madrid, Juventus, Galatasaray, Inter Milan, Arsenal, FC Porto, and Corinthians, have launched Fan Tokens through Socios.com. The Socios app is a product of Chiliz that lets fans acquire tokenized voting rights in their favorite clubs and engage with their teams and provides token holders access to unique rewards and exclusive promotions. Sevilla and River Plate are other clubs that will soon enter the world of Fan Tokens to join the other top teams.

In this article, we’ll dive deep into Fan Tokens, what they are, and how they work and offer a quick tutorial on how to buy Fan Tokens.

What Are Fan Tokens?

Fan Tokens are crypto assets designed to provide membership benefits to fandoms of sports teams, bands, and other organizations. Fan Token holders are eligible for such benefits as access to officially signed products, free tickets, and VIP experiences. Theycan vote on club decisions, engage with their favourite teams through polls, and use the tokens to earn rewards, such as VIP access to the teams and exclusive promotions. Prizes also include acting as a stadium announcer or playing a match in your favorite team’s stadium.

Fan Tokens play an essential role in tightening the club community and providing benefits for everyone. Sports clubs issue and sell Fan Tokens to further integrate fans into the club, democratize and organize experiences, establish club leadership, and earn free money. Fans get voting rights, access to discounts, promotions, limited content, the opportunity to test their sports knowledge against each other, and win prizes like signed club merchandise, etc. They can determine the future of their favorite sports team or music celebrity in some (often trivial and legally non-binding) way and speculate on their success in Web 3 marketplaces.

https://www.youtube.com/watch?v=dSViq7WoZds

Fan Tokens are utility tokens offered by sports clubs through the Socios.com app. While Fan Tokens use blockchain for authentication, ownership, transactions, and voting records, they are entirely “fungible” or interchangeable, unlike NFTs or non-fungible tokens. This means that, just like any other digital asset, Fan Tokens can be purchased and exchanged on various cryptocurrency exchanges.

Fan Tokens aren’t necessarily backed by underlying value principles but get their worth from the fan base that shows loyalty to its team.

How Do Fan Tokens Work?

Fans can buy digital tokens and trade them like other cryptocurrencies. When trading, the seller usually sets the price of a Fan Token. It is also subject to change based on market movement and the token’s popularity at the time. 

When users obtain a certain number of Fan Tokens, they get the right to vote on various issues impacting their favorite team. The topics fans can vote on vary depending on the team; however, they may include the following:

• MVP categories
• Tour bus designs
• Match locations
• A club’s merch design
• Ticketing matters.

These perks make fans feel more involved in the club they already support and add an extra level of pride and prestige because their Fan Tokens will likely increase in value as the club grows.

Fan Tokens create an exclusive community of the most devoted fans. They provide a new opportunity for fans to participate in an engaging voting and rewards system. The more Fan Tokens you own, the more power you have over the club and the more loyalty you show to your team.

How to Buy Fan Tokens?

Fans must purchase CHZ through a crypto exchange to obtain Fan Tokens that exist on the Chiliz network. CHZ tokens fuel the Socios platform and can be used to purchase and trade different Fan Tokens on Socios.com. Fan Tokens can be traded on Chiliz.net – their in-house exchange and trading platform against CHZ. However, Fan Tokens are also available outside of Chiliz and its Socios.com website.

Some Fan Tokens are currently available on popular centralized exchanges, but others may not be certified or large enough to be listed. In this case, Fan Tokens can only be traded or swapped on decentralized exchanges (DEX) such as PancakeSwap. To trade Fan Tokens on DEXs, you must own a cryptocurrency.

Chiliz, the largest Fan Token, is presently available on various platforms such as:

• Binance
• KuCoin
• Huobi Global
• Coinbase Pro
• Chiliz

Binance launched its own Fan Tokens platform, known as Binance Fan Tokens, in October 2021. It hosts tokens from Alpine F1 Team, S.S. Lazio, FC Porto, and Santos FC. The market capitalization for Fan Tokens is small. As of September 2022, S.S. Lazio had a market cap of $66 million; Alpine F1 Team a market capitalization of $50 million; and PSG a market cap of $29 million. By comparison, Bitcoin’s market cap is over $380 billion, and Ethereum’s is $200 billion.

CoinStats offers tutorials to teach you how to buy cryptocurrencies.

Follow the steps below to acquire Fan Tokens on Socios.com:

1. Install the app
2. Verify your identity
3. Go to “Wallet”
4. Purchase the required quantity of $CHZ
5. Go to “Market”
6. Find the Fan Token and press “Buy.

How to Identify a Fan Token?

Fan tokens are commonly used in fan and sports clubs. They vary from other cryptocurrencies, such as Ethereum or Chainlink, in that they don’t solve the same financial or technological issues. In other words, they are more of a fun, reward-based token.

Check out some popular Fan Tokens from sports and music below:

• Paris Saint-Germain Fan Token
• FC Barcelona Fan Token
• KPOP Fan Token
• Galatasaray Fan Token
• Professional Fighters League Fan Token.

What Is Chiliz?

Chiliz (CHZ) prides itself on being “the world’s premier blockchain financial service for sports and entertainment.” It’s a popular cryptocurrency for sports tokenization and the most popular Fan Token platform to date. Chiliz is famous for the invention of the Fan Token and is the first sports-based crypto exchange where fans can trade customized Fan Tokens and participate in club-based surveys and pools.

Socios.com is the first consumer-facing product of Chiliz. It’s a mainstream app that enables fans to get tokenized voting rights in their favorite clubs and engage with their teams. It also grants access to unique rewards, experiences, prediction games, and challenges.  

Socios.com connects clubs to their fan bases, securing additional revenue streams that are digital, secure, transparent, and wholly integrated with the real fan experience. It allows interested teams to issue Fan Tokens. On the Socios.com platform, club partners organize a Fan Token Offering (FTO), during which Fan Token values are determined and made available to fans before they reach the marketplace.

The digital currency for the Chiliz and Socios.com platforms is CHZ, the native ERC20 utility token for the Chiliz network secured by the Ethereum blockchain.

Football clubs plan on using Socios.com as part of their fan engagement strategy to continue to grow their global fan bases, particularly in Asia, with a huge football fan community.

Frequently Asked Questions

What Decisions Can I Vote On?

In 2021, Socios.com’s partner clubs ran over 300 surveys via the app, allowing their fans to vote on the names of new facilities, jersey designs, shirt numbers of new signings, celebration music, and more.

What Prizes and Experiences Can a Fan Token Owner Get?

In 2021, Socios.com‘s partner clubs gave over 5,000 fans gifts such as officially signed merchandise, free tickets, and VIP experiences. Prizes included appearing as a stadium announcer, playing a match in the stadium of your favorite team, and earning personalized football souvenirs.

How Many Fan Tokens Are Required?

A single Fan Token is required to use this new service. Fan Tokens don’t expire, but the more tokens you have, the more valuable your votes will be, and you’ll have a better chance to win prizes.

Should I Buy Fan Tokens?

Many people still consider purchasing cryptocurrency to be a high-risk investment. The crypto market is volatile, and meme coins are especially vulnerable to price swings. However, as some Fan Tokens may skyrocket in price if they catch on and become popular, significant risk can mean great reward.

Remember to thoroughly consider the value and solutions offered by the product when making any investment. Fan Tokens may be less of an investment and more of a purchase of access to the specific privileges that sports teams can offer.

Investment Advice Disclaimer: This content, including any information contained therein, is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any security, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice.

Welcome amazing new CoinStats Midas product line, as well as features such as DeFi tracking, NFT activity aggregator, and smart alert system!

On November 14th, CoinStats Team held a live event Supernova Fall to celebrate a batch of new essential pr…

The irregularities and lack of trust that characterize centralized exchanges (CEX) have irritated many developers into creating fully decentralized exchanges (DEX) that compete with and establish the true code of decentralization.

One of those decentralized exchanges is ApeSwap. This article will give you a complete guide into what it is, how it works, what it offers, and every other thing you should know. Let’s get started.

What is ApeSwap?

ApeSwap is a decentralized exchange (DEX) on the BNB Chain that provides a full toolkit for DeFi applications. This includes access to all sorts of financial services like token swaps, liquidity provision, alternative savings, staking, lending and borrowing, IDOs, tokenized assets, and margin trading.

The decentralized exchange, which has relationships with significant initiatives like KAI, LUNR, FRAX, and Animoca Brands, is regarded as one of the largest in the Binance ecosystem. Through transparency, security, and assistance, ApeSwap sees its goal as giving the crypto masses affordable financial alternatives. 

Why was ApeSwap created?

The trendiest trend right now in the crypto industry is DeFi. The ApeSwap platform focuses heavily on decentralizing every facet of the conventional financial sector and opening up access to services like loans, insurance, and others to all members of society, especially those at the bottom and in less developed nations that have not always had easy access to these services.

ApeSwap’s goal is to establish a sustainable, neighborhood-driven decentralized autonomous organization (DAO) that aims to decentralize conventional finance and establish a just economy.

ApeSwap is trying to address issues faced by its centralized competitors, such as the risk of hacking, mismanagement, and arbitrary fees, and to take the place of centralized intermediaries in financial applications such as derivatives, insurance, and loans.

With more than 1.7 billion individuals unbanked individuals globally, it has been impossible for them to access essential financial services that may give them more power. ApeSwap thrives in this space by employing blockchain protocols and cryptocurrency tokens to decentralize all financial services.

The huge chances to gain from what was previously impossible have contributed to the ApeSwap’s protocol increasing appeal among the general public.

Who Founded Apesawap?

A group of people deeply experienced in cryptocurrency trading, farming, and working with other crypto initiatives formed ApeSwap.

They believed they could unite after taking part in the DeFi ecosystem for a while to introduce a more equitable, open, and community-driven decentralized exchange. The initiative was given the hasty name “ApeSwap “— created by DeFi apes for DeFi apes.

Over 15 team members make up ApeSwap, established in 2021. The entire team remains anonymous and is presented behind avatars like Donkey Kong or Harambe. The complete list of co-founders includes:

• ApeGuru — highly experienced full stack developer.
• ApeTastic — highly experienced smart contract developer.
• Harambe Nakamoto — expert on tokenomics, analytics, and engineering
• DK — business development and marketing guru
• Obie Dobo — expert community manager (King of the community jungle)

On the ApeSwap team document, all profiles are pretty extensive, even though they are all anonymous. The entire crew has been working on the project for about a year, which largely reduces the chances of ApeSwap being a scam.

What Makes ApeSwap Unique?

A decentralized exchange, which enables users to trade between more than 150 tokens on BNB and Polygon, is the main offering of ApeSwap, which also provides the standard toolkit for DeFi applications. On token swaps, ApeSwap charges trading fees of 0.2%. A portion of the fees goes to the ApeSwap Treasury, while the rest is distributed to liquidity providers. ApeSwap also introduced leverage trading in Q1 of 2022.

Another important aspect of ApeSwap is its yield farms, encouraging users to contribute liquidity by staking APE-LP tokens. Its auto-compounding vaults, where tokens are automatically staked to produce farming yields, are available to anyone searching for a passive investment approach. BANANA tokens are also burned and repurchased by Burning Vaults, with profits from farming activities on the platform. 

Initial Ape Offerings (IAOs) are IDOs at ApeSwap that can either be official IAOs (approved and certified by ApeSwap ) or self-serve IAOs (unapproved projects).

Additionally, 1,000 “non-fungible apes” were made available by ApeSwap for trading at its NFA Auction House. The exchange also intends to work with its partner, Liquid Collectibles, to produce a collection of “non-fungible bananas.”

What is ApeSwap (BANANA) Token?

The main native utility token in the ApeSwap ecosystem is called BANANA. The protocol uses BANANA to do a number of tasks, such as paying users for bringing liquidity to the ApeSwap platform and encouraging markets on the ApeSwap Lending Network.

On the Swap tab of the Exchange (of choice) page, users can buy BANANA using BNB Chain, Polygon, or Ethereum tokens.

Every Thursday, ApeSwap burns BANANA tokens to remove them from circulation and ease inflationary pressure in order to manage return-on-emissions for the protocol.

On the Exchange page’s Liquidity tab, users can provide liquidity to the ApeSwap DEX and then stake their liquidity provider (LP) tokens in any available Yield Farms or BANANA Maximizers to earn BANANA. Or, they can lend or borrow crypto assets on ApeSwap’s lending network to receive BANANA rewards.

What Can I Do With BANANA? 

BANANA can be employed in the ways listed below: 

• To earn more BANANA or tokens from partner projects, stake your BANANA tokens in ApeSwap’s staking pools.
• To acquire GNANA on the Golden BANANA page
• To create liquidity provider tokens (APE-LP tokens) on the Exchange page by combining BANANA with BNB or BUSD. These tokens earn trading fees and can be placed in yield farms or BANANA maximizers to generate passive revenue.
• To earn BANANA by purchasing Treasury Bills with APE-LP tokens during a predetermined vesting time.
• To earn interest by lending BANANA through the lending network.
• To get liquidity without selling BANANA, borrow against your BANANA on the lending network.

BANANA Tokenomics – Hard Cap

Voters in ApeSwap DAO accepted Governance Proposal 22 to impose a hard cap of 420,000,000 BANANA on August 31, 2022. This indicates that there will never be more BANANA tokens produced (i.e. the sum of all BANANA in circulation, including those burned).

How Many ApeSwap (BANANA) Tokens are in Circulation?

With BANANA and GNANA serving as the two main utility tokens, ApeSwap operates on a dual-token paradigm. GNANA compensates users with access to governance and special perks, while BANANA tokens are used to reward liquidity providers. Four major use cases have been pre-established for the BANANA token:

• Staking it to earn more BANANA.
• Buying GNANA with it.
• Lending BANANA on the lending platform for rewards.
• Swapping it for other tokens.

Additionally, you should know that BANANA has an unlimited total supply and is an inflationary coin. As it stands, 316,800 bananas are released per day and distributed as follows:

• Yield Farms (BNB Chain): 39.5%
• BANANA Pool: 22.7%
• Lending Network (Ola): 9.09%
• Yield Farms (Polygon): 9.09%
• Bonds: 9.09%
• Dev Wallet: 6.36%
• Burned: 2.73%
• $GNANA Pool: 1.36%

BANANA as a Deflationary Token:

Eventually, BANANA will turn into a deflationary token. As a result, ApeSwap has put into place several deflationary mechanics:

1. Quarterly buyback and burn: 50% of trade commissions go toward BANANA buybacks and burns. 
2. Weekly Thursday burns
3. IDO-generated GNANA is used to purchase back and burn BANANA.
4. Projects partnering with ApeSwap burning BANANA
5. Burning Vaults uses 10% of the fees it receives to purchase stablecoins and store them permanently in vaults. These vaults’ rewards are used to purchase and burn $BANANA.

What Gives ApeSwap (BANANA) Value?

ApeSwap (BANANA) gets its value from its utility. Being a governance token, the more people hold, buy, and swap BANANA, the more value is ascribed to the ApeSwap platform. The range of swap options also available with the BANANA token makes it easier to generate liquidity. In simple terms, the more BANANA finds utility, the higher its value. Therefore, its current value is a reflection of its current utility status.

How Does ApewSwap Work?

Users can purchase BANANA and GNANA tokens by linking their crypto wallet to the exchange and exchanging another token. Additionally, ApeSwap provides token swaps between different tokens and has generated more than $16 billion in total transaction volume and more than $200 million in TVL.

Users can add liquidity to a liquidity pair on the exchange by connecting their wallets to the ApeSwap DEX. In exchange, users get LP tokens, which they can stake to get a piece of the BANANA emissions as a reward.

Additionally, users can stake their BANANA in the ApeSwap burning vaults to increase their portion of the available BANANA supply. ApeSwap currently offers 69% APY on staked BANANA and 87% APY on the liquidity pair of BANANA-BUSD.

Users can farm yield on a wide range of trading pairs. Special farm multipliers on its BANANA farms control the dispersed emitted banana to the farms. Users are encouraged to add more liquidity to these pairs by farms with higher multipliers since they offer bigger BANANA incentives.

Users can share in the trading commissions and BANANA rewards by staking their LP tokens in yield farms. By paying out their tokens, Jungle Farms also enables partner projects to encourage their liquidity. Farmers who provide the highest yields earn the partner token rather than BANANA.

Through ApeSwap, users and protocols can also raise money. Treasury Bills and Initial Ape Offerings (IAOs) are two of the fundraising options provided by ApeSwap.

Initial Ape Offerings (IAO)

Users can participate in new and upcoming projects through Initial Ape Offerings. Initial Ape Offerings (IAO), as the name suggests, are fundraising activities that ApeSwap users can participate in to launch new tokens and increase their liquidity.

IAOs come in two varieties: official and self-serve. ApeSwap audits projects in official IAOs from a list of official IAO partner applicants, gives them marketing assistance, and grants them access to the raised BNB. Participants can pay with BNB or GNANA, which uses the GNANA token’s greater purchasing power to reward its holders.

With Self-serve IAOs, cryptocurrency projects can launch their crowdfunding campaign and generate their own ApeSwap DEX liquidity. However, neither ApeSwap nor the platform provides marketing assistance to these IAOs.

Treasury Bills

Registered as the first yield-generating NFT product on the exchange, Treasury Bills are a new endeavor to safeguard ApeSwap’s long-term viability. In exchange for providing liquidity, users can get BANANA Bills or Jungle Bills. As Olympus DAO provides liquidity through its bonds, so does this to create protocol-owned liquidity for ApeSwap.

While Jungle Bills create partner tokens and give these protocols access to their protocol-owned liquidity, BANANA bills provide BANANA tokens at a discount.

The ApeSwap Lending Network allows users to lend and borrow money. Investors can benefit from the value of their assets while still maintaining ownership by borrowing. A token’s collateral factor determines the amount that can be borrowed. As an illustration, WBTC has a 70% collateral component, which allows users to borrow up to 70% of the value of their WBTC. Users who lend money will get a distribution APY in BANANA tokens and a supply APY in the currency they invested (WBTC if they lend WBTC).

What Does ApeSwap Offer?

DeFi Lending and Borrowing

On their platform, ApeSwap offers users a variety of options to invest, profit from taking part in several activities. Most of these activities center on rewarding users in BANANA, the native cryptocurrency that serves as ApeSwap’s utility token and is used to reward users.

Through the ApeSwap platform, any investor can purchase the native BANANA token in addition to lending and borrowing a variety of other cryptocurrencies, like DAI, ETH, USDC, ZRX, USDT, WBTC, BAT, REP, and SAI.

DeFi lending is one area that has attracted customers’ attention. Therefore, ApeSwap has developed solutions that provide loans to interested people or enterprises without intermediaries.

The protocol facilitates lending and borrowing of cryptocurrency assets and allows all parties involved to get interest for committing cryptocurrency. As investors no longer have to spend time, effort, and money interacting with conventional financial industry intermediaries, such services have grown increasingly crucial.

DeFi Rewards and Earning

One area that has substantially enhanced the lives of many investors is the provision of possible rewards. This keeps luring individuals to the DeFi industry and accelerates the uptake of DeFi technologies.

For investors, ApeSwap protocol provides a variety of ways to make money and receive rewards on the platform, including staking and locking tokens in its liquidity pool. Yield farming is a profitable activity in which participants deposit cryptocurrency into the ApeSwap liquidity pool for a predetermined amount of time in exchange for rewards.

Investors can stake any asset they own to any preferred liquidity pool for rewards by using ApeSwap’s native token (BANANA).

Investors once had to go through many processes to accomplish this, but thanks to ApeSwap, it is now a straightforward task. One only needs to convert their cryptocurrency into the BANANA token, after which they can stake it wherever they like or purchase BANANA on the project’s official website.

The ApeSwap platform also advises users on where to stake for the best returns and other top investing opportunities. Such recommendations are fairly accurate because they are data-driven and employ sophisticated algorithms.

DeFi Insurance

The interest rates generated via staking and yield farming far exceed those provided by organizations like banks. However, there is a substantial risk associated with large returns. Because of this, the ApeSwap platform aids customers in hedging against potential risks associated with smart contracts. Along with safeguarding against hackers and bug exploitation, ApeSwap safeguards investors’ assets from depreciating when farmed or staking.

ApeSwap Unique Features 

Partnerships

The “most connected and most supporting DEX in crypto” is how ApeSwap describes itself. Its 200+ partners are spread throughout a variety of blockchain-related industries, including NFT, GameFi, DeFi, bridge, launchpads, incubators, and more. In its ApeSwap Jungle, ApeSwap includes a list of its partners. ApeSwap is able to offer marketing as a service to other protocols due to its position as a DeFi hub with all the required solutions for users.

A Variety of Use Cases

ApeSwap includes all the typical features of a decentralized exchange, including token swaps, lending and borrowing, yield farming, staking, and more. But it goes further than that, offering valuable services to investors and protocols.

Its Treasury Bills, for instance, enable ApeSwap and other protocols to produce protocol-owned liquidity. Another illustration would be its Initial Ape Offerings, which serve as a launchpad. In addition to giving protocols a mechanism to kickstart liquidity and take advantage of ApeSwap’s marketing skills, they also allow users to invest in potential new protocols.

Community 

ApeSwap is run as a DAO and makes an effort to be open about how it generates and uses money. ApeSwap reserves governance for its most important long-term community members—GNANA holders. It also exposes protocol revenue and burn mechanics on its Financials page. 

Getting Started with ApeSwap 

Beginning your journey with ApeSwap is as simple as: 

• Participating by engaging with the community, utilizing the DeFi platform, and purchasing the BANANA and GNANA native utility tokens.
• Utilizing the DEX to trade between various cryptocurrency tokens on BNB Chain, Polygon, and Ethereum.
• Creating liquidity between cryptocurrency token pairs that reward liquidity provider (LP) tokens, which can then be staked in yield farms or maximizers to generate BANANA. These tokens can also be used to earn trading fees.
• Earning tokens from related projects, staking BANANA or GNANA in staking pools.
• Utilizing the ApeSwap Lending Network to lend and borrow cryptocurrency assets.
• Taking part in initial ape offerings for brand-new cryptocurrency projects.
• Buying Treasury Bills with LPs to get cheap BANANA or partner tokens that vest over time.

ApeSwap also allows partner crypto projects to. :

• Advertise their cryptocurrency on the decentralized exchange.
• Get advice from the team. 
• Interact with the thriving partnership environment.
• Co-market with the team to attract new customers.
• Offer Yield Farms that encourage users to increase the liquidity of their tokens on the exchange.
• Utilize Initial Ape Offerings and Jungle to raise money.

Conclusion

The blockchain sector and the global market at large have benefited from DeFi. ApeSwap provides decentralized financial instruments that guarantee simple transactions and maximize investors’ returns in addition to acting as a decentralized store of value.

Unlike other platforms, ApeSwap is simple to use and comprehend. Due to the platform’s use of BNB Chain and its low switching fees, swapping and staking are even more convenient and advantageous.

In other words, ApeSwap is pushing innovation to develop novel and effective user engagement strategies. The platform is increasingly emerging as the ideal option for investors wishing to optimize their investments.

dYdX  is a decentralized exchange built on the Ethereum blockchain that supports spot, margin, perpetuals trading, and lending and borrowing services. It’s one of the world’s largest non-custodial exchanges in terms of trading volume and market s…

With over 280 centralized and decentralized exchanges in the crypto space, it’s increasingly difficult and time-consuming for users to find the best option for their digital asset swaps.

But what if there was a network built to help you find the best option for your cryptocurrency swaps, including the cheapest transaction fees?

Enter 1inch Network, a decentralized exchange aggregator and liquidity provider that displays the prices and liquidity available on multiple exchanges helping you find the best rates and lowest fees for your trades.

Join us in our deep dive into 1inch DEX aggregator, an extensive breakdown of its technology, history, advantages, etc., and proceed with a quick tutorial to help you get started.

What Is 1inch Network?

1inch Network is a decentralized exchange (DEX) aggregator and automated market maker (AMM) that aims to find the most efficient swapping routes across leading decentralized exchanges. It saves users’ money by finding the fastest and cheapest route stored on the Ethereum blockchain and facilitated without an intermediary.

The platform divides the exchange amongst multiple exchange sources and checks for their market depths to ensure a user gets the best swap fee across many platforms. It displays the price and liquidity available on multiple exchanges to verify whether you’re getting the best rate. 

Currently, 1inch exchange sources liquidity over three blockchains: Ethereum, Binance Smart Chain networks, and Polygon. 

1inch network is developed by 1inch Labs, a decentralized team of software developers, and is governed by the 1inch DAO. Another key contributor is the 1inch Foundation, a non-profit organization that has issued the 1INCH token and is responsible for the network’s community initiatives.

How Does 1inch Work?

So how does 1inch facilitate an asset swap? After submitting an order,  1inch will search across all compatible sources and DEXs to enable cost-efficient and secure swap transactions across multiple liquidity sources. 

The protocol uses the Pathfinder algorithm to find the best trading path across different markets with over 50+ liquidity sources on Ethereum, 20+ liquidity sources on Binance Smart Chain, and 7+ on Polygon.

To achieve this, the protocol relies on multiple protocols, which all work together to ensure a smooth and efficient DeFi space. The three  underlying protocols are:

Aggregation Protocol

The 1inch Aggregation Protocol’s key role is to source liquidity from various decentralized exchanges and liquidity protocols and split a single trade across multiple exchanges to offer the best rates. This is achieved by 1inch’s V3 smart contract algorithm, which cross-references over 100 liquidity protocols to find the most advantageous digital asset swap based on parameters like price, liquidity, and slippage. The aggregation protocol uses the  Pathfinder discovery and routing algorithm to find the best paths across multiple markets in less than a second. It enables the protocol to split a digital asset swap into numerous transactions to offer users the fastest swap with the lowest fees. This is a relatively new feature, released as part of the 1inch v2 upgrade.

Liquidity Protocol

Liquidity Protocol is an Automated Market Maker (AMM) that allows users to trade their assets using liquidity pools automatically. The liquidity protocol provides liquidity to the pools and enables users to participate in liquidity mining programs to earn rewards.

The protocol works like other popular automated market makers, i.e., Uniswap and Sushiswap, automatically facilitating buy and sell orders on decentralized exchanges without needing an order book or central intermediary. Yet, 1inch’s additional features help it stands out from other AMMs.

The protocol’s smart contract algorithms are responsible for sourcing liquidity from different DEXs and pools. The AMM protocol has access to the deepest liquidity sources from the most popular networks, including Ethereum, BNB Chain, Avalanche, Polygon, Optimistic Ethereum (oΞ), Gnosis Chain, Fantom, Arbitrum, Aurora, and Klaytn.

Limit Order Protocol

1inch Network’s limit order protocol enables users to place limit orders on their asset swaps via smart contracts. The protocol facilitates flexible limit order functionality  and features no fees. The protocol offers dynamic pricing based on demand and supply, conditional execution of orders, multichain support, and fulfills requests for quotations. Furthermore, the protocol implements stop-loss orders, trailing stop orders, and auctions. 

1INCH Token

1INCH is the protocol’s governance and utility token. It’s an ERC-20 token and is available as a BEP-20 token on the BNB chain.

1INCH has a total supply of 1.5 billion tokens, with a current circulating supply of over 584 million coins. At the time of writing, 1INCH is the 128th largest cryptocurrency, with a market capitalization of $359.2 million, according to data from CoinStats.

The 1INCH token was launched on December 25, 2020. As a Christmas present, the token was airdropped to community members and users, who previously executed at least one trade before September 15, 2020, made at least four trades in total or traded a total minimum volume of $20. The token was also airdropped to 1inch liquidity providers.

As per the official token release announcement, the 1INCH token’s initial distribution was as follows:

• 56% of the total token supply was allocated to core backers, contributors, and early investors
• 30% was allocated to community incentives
• 14.5% – to the protocol growth and development fund (with a 4-year unlock period)
• 0.5% – to liquidity providers.

1inch Network Team and History

1inch was launched in May 2019 by Sergej Kunz, a former software engineer at Porsche, and Anton Bukov, a former smart contract developer at the Near protocol. The protocol was launched during the famous ETHGlobal New York hackathon.

1inch network was initially launched without venture capital firms or investors’ funding.

However, in August 2020, 1inch successfully closed its first investment round led by Binance Labs, raising $2.8 million from institutional investors like Galaxy Digital, Greenfield One, Libertus Capital, Dragonfly Capital, FTX, etc.

In December 2020, 1inch completed its second funding round led by Pantera Capital, raising $12 million from prominent institutional investors like ParaFi Capital, LAUNCHub Ventures, and Nima Capital.

In December 2021, 1inch closed an astonishing $175 million Series B funding round led by Amber Group, with participation from the likes of Jane Street, VanEck, Fenbushi Capital, Alameda Research, Celsius, Nexo, etc. This brought the protocol’s total valuation to $2.25 billion.

How to Use 1inch Network?

Executing a digital asset swap on the 1inch App is easy, especially using the simple mode. Here’s how it works:

1. Open the 1inch App. The app will automatically open the simple mode, which is more user-friendly and offers fewer features.

2. On the “Swap” window, click  “Connect wallet.”

3. This will prompt a window with all the available wallets. Select the one you’d like to use for the asset swap and accept the terms of service.

4. Once you’ve connected your crypto wallet, select the cryptocurrency you want to sell and enter the amount in the “You sell” tab. Then choose the cryptocurrency you want to buy in exchange by clicking on the “You buy” tab.

5. You can also choose between “Maximum return,” i.e., the best swap rates, or “Lowest gas cost,” for the lowest transaction fees.

1inch DAO

The 1inch Network is governed by the 1inch DAO — a decentralized autonomous organization that enables 1INCH stakers to participate in the protocol’s governance by voting for key protocol parameters. 

1inch Network DAO Treasury is a pool of funds under the ownership of the community, controlled by 12 multi-signature (multi-sig) wallets, of which 7 are needed to sign transactions.

All protocol funds (like the swap surplus created by Pathfinder) are directed toward the treasury, and none of the revenue funds go to the 1inch Foundation. The funds are used for grants and other network-oriented initiatives.

Governance

The 1inch Network’s governance structure differs from most DeFi protocols with its instant governance  feature, enabling the community to vote for protocol settings under the 1inch DAO in a transparent, user-friendly, and efficient way.

Instant governance has no entry barriers for users, making this governance structure more decentralized and community-oriented.

1inch allows anyone holding the governance token to create proposals or vote on existing ones. A user’s voting weight is directly proportional to the number of tokens held in the staking contract. Users can also choose to delegate their voting power to other addresses, known as “Delegatees.” 

Users have to stake their 1INCH tokens to be eligible to vote on the proposal and receive additional tokens as staking rewards. The amount of staking rewards is directly proportional to the fees generated on 1inch — more protocol fees equal greater staking returns for voters.

In an effort towards transparency, 1inch displays the top addresses by voting power.

1inch Earn

1inch Earn enables 1INCH token holders to earn passive income on their holdings through the following methods:

1. Providing Liquidity 

Providing liquidity is the main way to generate passive income on the network. This involves locking a cryptocurrency trading pair in 1inch’s liquidity pools in exchange for an annual percentage yield (APY) ranging from 1 to 205%, depending on the asset pair and trading pools.

Liquidity providers must stake both cryptocurrencies of the trading pair in a 1:1 ratio, like LDO – stETH tokens.

2. Staking

Staking is another popular yield farming product on 1inch, which requires 1inch token holders to lock up their tokens for a set period in the network’s staking contract. 

Staking APY differs depending on the pool balance. At the time of writing, stakers earn a fixed 6.35% APR from the Turbo 1INCH staking pool.

How to Stake on 1inch?

1. Visit the 1inch App homepage, click the “DAO” section to open the drop-down menu, and click “Staking.”

2. On the Staking dashboard, click “Connect Wallet” in the upper right corner and add the crypto wallet with your 1INCH tokens.

3. Enter the number of tokens you wish to stake in the “amount” field, or conveniently select the percentage of the total holding you wish to commit.

4. Once you’ve reviewed your selection, click on “Submit.”
5.  After carefully reviewing  the transaction displayed in your crypto wallet, click “give permission to stake 1INCH.”

6. Approve the transaction and click “Stake Token” on the Staking Dashboard. Once the transaction is executed, your tokens will be staked on the 1inch smart contract.

1inch Network Benefits

The benefit of using 1inch is that the aggregation protocol offers the best swap rates across all DeFi protocols by choosing the most efficient swap route from hundreds of liquidity sources. 

The network also offers a user-friendly front-end interface attracting crypto beginners and bolstering blockchain mass adoption. The app provides a simple trading mode for beginners and a classic trading mode with advanced features for seasoned DeFi veterans.

Another major benefit of 1inch is that the network charges no trading fees for asset swaps. Moreover, the protocol’s top stakers get up to 95% refund for gas fees charged using the network.

Security is another feature that makes the network stand out among DeFi protocols. 1inch has a 91/100 Skynet Trust Score, according to blockchain security firm CertiK. 1inch underwent numerous security audits from other industry-leading firms like SlowMist, OpenZeppelin, and Consensys Diligence, to name a few. For each code vulnerability, 1inch performs an average of 16 audits, while other DeFi protocols request 3 to 4 audits for the same issues.

Last but not least, 1inch Network is fully non-custodial, meaning that no central entity or third party ever controls user assets. This is a great selling point for investors as it nullifies the risk of asset freezing or censorship.

1inch Network Criticism

While 1inch Network doesn’t raise many concerns, some people have questions concerning the 1INCH token. The reason for concern is that 56% of the total token supply was initially distributed to investors and core contributors, which is an unusually large percentage.

This raises concerns about the token distribution’s centralization and potential price manipulation, as the group of stakeholders could create a significant amount of sell pressure, leaving retail investors holding the bag. It also might be the likely reason why 1INCH is barely hanging in the top 130 tokens by market cap, despite the immense benefits of using the network.

Bottom line

1inch offers liquidity mining programs and compares exchange rates between multiple platforms to provide its users with the best possible options. Moreover, the exchange has an intuitive user interface and provides an array of opportunities, such as staking, supplying liquidity, earning governance rewards, etc.

Currently, 1inch Network has a total value locked (TVL) of $2.3 million, down from its all-time high of $1.64 billion in March 2021. Yet, it’s worth noting that this downtrend is correlated with the drastic TVL drop in DeFi, which saw the industry fall from its peak of $216 billion in TVL in December 2021, all the way down to $59 billion in TVL to its lowest in June 2022.

On the bright side, 1inch Network will likely grow and recapture the lost TVL due to its support of the most popular blockchains and offering the most profitable asset swaps in the industry. Additionally, 1inch Network is supported by some of the most prominent venture capital firms, helping it to maintain its growth by investing more funding into the network to support its development.

Can you think of a couple of ways you could utilize your crypto assets? Lending and borrowing are most likely nowhere near your top mentions, right? Yet, crypto loans are an ever-growing sensation in the nascent crypto industry. 

The entire process takes place seamlessly, as it uses smart contracts to match lenders with borrowers. For lenders, this can be a way to earn some passive income, while borrowers can use their crypto without cashing out. 

Let’s explore how one of the largest lending platforms, Aave, works and improve our knowledge of crypto lending processes.

What Is Aave?

Aave is a decentralized lending protocol that allows its users to borrow and lend various cryptocurrencies without the involvement of an intermediary. 

This simply means that the transactions are not governed by any central authority. The transactions are, instead, controlled by smart contracts. These smart contracts are responsible for overseeing the distribution and allocation of crypto assets. This is done through a network of computers. 

Why Was Aave Protocol Built?

The Aave system was initially built and mainly runs on the Ethereum blockchain, but it has also branched out to six other blockchains like Avalanche, Polygon, and Fantom. There are currently 35 different crypto coins available for lending and 25 cryptocurrencies available for borrowing, and different pools come with different pairs and interest rates. 

Aave was created to allow users to either borrow or lend cryptos. Borrowers are required to set down a certain amount as collateral before being allowed to borrow, while lenders can put their cryptocurrency to work and earn some returns. 

Borrowers

A user can set particular crypto as collateral and borrow another type of crypto. For example, a borrower may use BAT tokens as collateral and borrow ETH instead. This gives users exposure to several cryptocurrencies without necessarily owning them.

Lenders 

Lenders contribute cryptocurrency to the Aave market; this improves liquidity and makes funds available to borrowers. Users that lend their funds to Aave earn passive income for providing liquidity. This income is given in the form of interest. 

Aave protocol eliminates the need for any form of middlemen. Everything on the platform is run using smart contracts. Even the interest rates are algorithmically calculated when a borrowing or lending transaction is performed.

For borrowers, the algorithm calculates the interest to be paid by comparing the overall available funds to the funds needed by the user. On the flip side, for lenders, the interest is calculated based on the rate of earning and withdrawal at any point in time. 

Who Are the Founders of Aave?

Aave was initially launched in 2017 by Stani Kulechov in Switzerland. Kulechov built Aave while he was still a law student, receiving training at the University of Helsinki. His initial plan was to build a protocol that allowed users to borrow or lend crypto directly. This was to be done in this way; the lenders will post loan offers while the borrowers post loan requests. 

This protocol, called ETHLend, was met with a lot of difficulties. The major ones were that adequate liquidity wasn’t being provided to the pool, and it was difficult to match willing lenders with ready borrowers. The bear market also took its toll. The combination of these factors led to its collapse in 2018.

Aave actually started out with the name ETHlend. During the initial coin offering (ICO) in 2017, ETHlend raised a whopping 16.2 million dollars, but that was not all. The company also sold a billion units of its native token, LEND. The token is now known as the AAVE token.

After the collapse, the team reviewed ETHlend in 2019 and changed from the peer-to-peer model to the current peer-to-smart contract model. They also made a decision to change the protocol name to Aave.

From ETHLend to Aave

At the time of the migration from LEND to AAVE, the tokens traded at a ratio of 100 LEND to 1 AAVE. This was done in a bid to reduce the total token supply. After the migration was done, the total supply was pegged at 18 million AAVE cryptocurrencies. 

Aave was then officially launched in January 2020. Later in the year, in August, the team announced a version 2 upgrade of the protocol.

Why Was Aave Created?

Aave was created to meet up the increasing demands for decentralized money markets. Many users required a means of borrowing cryptocurrency without needing an intermediary, which was why Aave came to the rescue.

Aave users no longer have their resources managed by a centralized authority. They can now manage their funds and make transactions with them as they deem fit. Users don’t even have to know the identity of the person they are transacting with. Smart contracts do all the work here. 

So, anyone with a web3 wallet can comfortably perform borrowing or lending transactions using Aave.

Why Is Aave Popular?

The popularity of Aave has grown due to quite a number of reasons. The protocol has played a key role in the decentralized finance industry in the area of liquidity and technology. It is regarded as one of the topmost-ranked money markets in the industry. As a most recent testament to that, Aave has helped a traditional finance giant J.P. Morgan execute its first DeFi transaction. 

Aave makes use of Distributed Ledger Technology (DLT) to log transactions. This is, however, not the main distinguishing factor of Aave. The protocol allows users to borrow or lend a wide variety of crypto coins, including highly rated ones like Ethereum and USDT, as well as other stablecoins and popular altcoins.

The major reason behind the popularity of Aave is its unique “flash loan” feature. This feature allows users to borrow cryptocurrencies without needing any collateral. The transaction must, however, be completed within the time period of a transaction block.

For flash Aave loans to work, the borrower must place a request, use it, and pay it back (plus a 0.09% fee), all within the same transaction block – in Ethereum’s case, 13 seconds. If the borrower fails to meet up, the transaction is automatically cancelled, and all traces are cleared off like the transaction never happened. 

This ensures that both parties (Aave and the borrower) encounter no risk.

Interoperability is also a factor that boosts the popularity of Aave. The decentralized lending protocol can interoperate with a variety of decentralized finance platforms. This singular feature makes it very valuable to users who use Aave to perform their lending and borrowing transactions.  

What Is Aave Token?

AAVE is the official governance token of the Aave protocol. This means that AAVE token holders have the power to decide what happens on the network. Ownership of the token gives a user the ability to vote and decide the result of various Aave Improvement Proposals (AIPs) sent across the network.

You should note that one AAVE token is equal to one vote. The more tokens you have, the more votes you can cast. 

Aside from the AAVE token, another token (or rather a set of tokens) is also used on the Aave protocol. These are the aTokens. aTokens are usually given to lenders who add to a pool. These tokens are issued to enable lenders to receive their interest for providing liquidity to the pool.

Other benefits are also attached to the ownership of AAVE tokens besides voting. Borrowers who deposit AAVE tokens as collateral usually get automatic discounts on transaction fees. Also, borrowing the AAVE token is usually free of charge. 

AAVE is a deflationary token. This means that the token is burned constantly. Burning simply means that a particular amount of tokens are sent to a wallet address without a private key to be locked away forever. This will reduce the number of tokens in circulation and will, in turn, force their value to go up.

About 80% of the transaction fees paid are used in the burning process. About 3 million AAVE tokens have also been set aside by the development team to foster the development and growth of the protocol. These coins are kept in Aave’s Ecosystem Reserve Contract.

AAVE token is currently one of the biggest DeFi tokens in terms of market cap. You can trade, exchange, and buy AAVE tokens on several reputable crypto exchanges. You can store your AAVE on any Ethereum-supported blockchain wallet. 

How Many AAVE Tokens Are in Circulation?

The maximum supply cap of AAVE is pegged at 16 million tokens. However, out of this number, only about 12.5 million coins are currently in circulation. 

The majority of the amount generated from the payment of transaction fees is used to buy back the AAVE token, which would then be burned. This process regulates the number of tokens in circulation, and also contributes to the liquidity of the pool.

The market cap of the AAVE token is determined by multiplying the circulating supply with the token’s market price at any given time. The market rank of any coin is determined by the market cap. The higher the value of the market cap, the higher the rank of the crypto in the market.

What Gives AAVE Tokens Value?

The value of AAVE is tied to its utility. The Aave protocol has a lot of use cases and features that make it even more valuable. The value of the token  is also tied to its supply, which is capped at a fixed value of 16 million. 

Aave’s DeFi protocol system uses 80% of the fees to purchase AAVE tokens and burn them. This lowers the number of tokens in circulation, which boosts the overall value of the token. The leftover 20% of transaction fees are used to give incentives or rewards to those who lend funds to the liquidity pool.

The popularity and widespread acceptance also directly affect its value. The more people use the protocol, the higher its value. 

How Does Aave Work?

Aave functions as a decentralized money market. Rather than connecting individual lenders to borrowers, Aave works using liquidity pools. Here, lenders can add their crypto to the Aave pools, after which they earn rewards based on the amount they deposited. 

The pools are algorithmically maintained, and the loans are also automated without any third-party interference. The loans generally come in types:

• Stable
• Variable
• Flash

The loans are also available in several different cryptocurrencies, including BAT and LINK.

Each cryptocurrency has its unique borrowing rate, all of which are listed on Aave’s official website. Rates are calculated based on the forces of supply and demand. If the demand is higher, the interest rate is raised to encourage lenders to deposit more of that crypto.

On the other hand, if the supply of particular crypto is higher than its demand, interest rates are lowered to encourage users to borrow that crypto. 

When performing any transaction on Aave, you get rewarded with aTokens, irrespective of whether the deposited funds were meant for lending or borrowing. 

Each cryptocurrency has its own aToken. For instance, a deposit of ETH will result in aETH, while a deposit of BAT will give aBAT. These tokens are in equal ratio (1:1) with the value of the asset in question.

These tokens can be stored in cryptocurrency wallets, exchanged, and even traded. This will give users the opportunity to access a wide range of cryptocurrencies without necessarily owning them. 

As earlier stated, borrowers are required to deposit collateral before being allowed to borrow. It should, however, be noted that the loans are overcollateralized. What this means is that the collateral is expected to be more in value than the amount to be borrowed.

This Aave loaning system is a good option for investors who need liquidity but do not want to sell off their crypto assets outright. After being deposited, the collateral is handed over to the lender to keep. And if the borrower cannot return the assets within the specified time period, the lender keeps the collateral. 

Aave runs on a noncustodial system. This simply means that the contributors to the liquidity pool do not outrightly give up the ownership of their digital assets. 

Volatility is a factor that greatly affects cryptocurrency assets. Measures have been put in place to mitigate the effects.

If the crypto’s value increases after depositing the collateral, the initial deposit will also increase in value and will be collected by the borrower after repaying the loan.

If the value decreases below 82.5%, the deposit is lost to the protocol and given to the lender.

Reserves

The crypto market can be extremely volatile, and extreme market swings can turn a business like Aave down the drain. To avoid this, Aave has reserved funds for liquidity pools. This fund is worth 3 million AAVE tokens and acts as a buffer for lenders.

Oracles

Aave can also be used to identify the real-time value of collateralized assets. In collaboration with Chainlink, Aave acts as an oracle to communicate with different blockchains. 

Flash Loans

The crypto lending scene changed when Aave introduced flash loans. These are loans that must be repaid within one block and can be used to leverage discrepancies in crypto prices across different exchanges. 

Interest Rate Switching

Additionally, users get the option to change their interest rate structure. Aave lets you select either constant or fluctuating rates whenever you like. Continually changing rates are determined by the liquidity pool’s demand. In contrast, stable rates are based on an item’s average interest rate over the previous 30 days.

Aave Pros and Cons

As with every other DeFi protocol, Aave has its pros and cons. 

Aave Pros

Strong institutional backing

Aave is backed by many credible crypto institutions. Winklevoss Capital and DTC capital are two popular ones. With this strong backing, it is easier to trust the Aave developmental team in the time of an upgrade. 

Multi-faceted uses 

To the natural mind, Aave is used to get loans, but having flash loans is more than a glaring advantage. Flash loans are different from normal loans because the loans must be repaid in one block and can help increase gains through scalping little discrepancy in crypto prices. 

Aave Cons

Over-collateralization

Aave’s business model requires the over-collateralization of loans. Although it protects the system, this model means average users cannot take loans beyond what they already own. 

Low-interest rates

Aave offers low-interest rates. While this might attract borrowers, the core of the system, Lenders, might favor competition with higher rates. 

Is Aave Safe?

The Aave protocol is highly secured. It periodically goes through periodic audits to ensure its smart contract is uncompromised, and lenders and borrowers can seamlessly use the platform for their lending and borrowing activities. Loans are almost always overcollateralized to avoid a case where the Aave platform does not have enough liquidity. This makes the platform continue running even in the likely event of loan default. Another way Aave always ensures positive liquidation is through a collateral threshold. This is relevant because the smart contract automatically puts loans in liquidation once they fall below this limit.

The platform also uses reserve liquidity pools that employ these funds to fend off market turbulence. The reserves furthermore act as protection for lenders whose money will be accessible when they want to withdraw it from the liquidity pools. 

Bottom Line

Lending and borrowing are two ‘crypto languages’ that will not be going out of vogue in the cryptocurrency market. Like in the traditional market, traders will always have a need for loans, either to leverage arbitrage opportunities or to get other things without liquidating their crypto holdings. Aave has positioned itself strategically through oracles, flash loans, and its interest-bearing tokens, and it is interesting to see how things play out after this current crypto bear market.

Here you’ll find Calvin’s answers to our questions about ICO, IDO, and STO fundraising models. Calvin is a core builder at Impossible Finance, a builder-focused multichain ecosystem featuring a decentralized venture builder, accelerator, launchpad, an…

Curve Finance is an Automated Market Maker (AMM)-based decentralized exchange (DEX) that connects users interested in swapping stablecoins. The platform’s AMM enables users to trade stablecoins from a liquidity pool without needing to find buyers and sellers. The protocol ensures low fees and minimal slippage by identifying the ideal routes for exchange.

CRV is the Curve DeFi protocol’s native utility token and governance token.

This review will look into Curve DAO features and provide potential investors with a tutorial on how to buy CRV.

Let’s get started with an easy step-by-step guide on buying CRV!

Step#1: Choose a Crypto Exchange

Curve DAO token is available on several cryptocurrency exchanges. Visit the market page on CoinStats to view the exchange platforms supporting CRV. Compare the exchanges’ security, user experience, fee structure, supported crypto assets, etc., to choose the one with the characteristics you need, such as affordable transaction fees, an intuitive platform, round-the-clock customer service, etc. Also, consider whether the cryptocurrency exchange is regulated by the Financial Industry Regulatory Authority (FINRA) and allows you to buy crypto using your preferred payment method.

In the crypto world, any trader is confronted with the initial choice between centralized and decentralized crypto exchanges, so let’s look into the details of each type below.

Centralized Exchange

A centralized crypto exchange or CEX, such as Coinbase, eToro, Binance, etc., is governed by a centralized system and charges specific fees for using their services. Most crypto trading takes place on centralized exchanges, allowing users to convert their fiat currencies directly into crypto easily. Centralized exchanges require their users to follow KYC (know your customer) and AML (anti-money laundering) rules by providing some information and personal identification documents. However, a CEX holds your digital assets on its platform while trades go through – raising the risk of hackers stealing the assets.

Decentralized Exchange

On the other hand, a decentralized exchange (DEX), like Uniswap, SushiSwap, Shibaswap, etc., is not governed by any central authority; instead, it operates over blockchain and charges no fee except for the gas fee applicable on a particular blockchain, i.e., on the Ethereum blockchain. Decentralized exchanges use smart contracts to let people trade crypto assets without needing regulatory authority. They deploy an automated market maker to remove any intermediaries and give complete control over the funds to users. Decentralized exchanges are less user-friendly from an interface standpoint and in terms of currency conversion. For instance, they don’t always allow users to deposit fiat money in exchange for crypto; users have to either already own crypto or use a centralized exchange to get crypto. It also takes longer to find someone looking to trade with you as DEX engages in peer-to-peer trade, and if liquidity is low, you may have to accept concessions on price and quickly sell or buy low-volume crypto.

For example, we’ll demonstrate the process of buying CRV on the Binance exchange below.

Step #2: Create an Account

To buy Curve DAO token CRV on Binance, you must register with the exchange through your Google account, a valid email address, an Apple account, or a valid mobile number. A link will be sent to your address, and you must click it to verify your account. Once the account is activated, you must create an elaborate password, and you’re good to go. 

Binance doesn’t require new users to undergo KYC (know your customer) verification straight away by providing additional documents. However, KYC verification enables you to take full advantage of the platform’s services for lowers fees.

To get verified, you must provide personal information such as:

• Full name
• Residential address
• Date of Birth
• ID Document. 

Sometimes, you might also need to upload a selfie or undergo video verification to finalize the process. Once your identity verification is complete, it’s recommended to activate two-factor authentication (2FA) for an extra layer of security.

Step #3: Deposit Funds

The next step is to deposit funds into your newly created Binance account to buy CRV tokens. Binance supports several deposit methods, such as a credit/debit card, a wire transfer, bank deposits from your bank account, and third-party payments, such as Simplex. The fees for buying crypto through the methods described above vary, so you should check them before making a purchase is highly recommended.

You can also link your crypto wallet to buy curve DAO token CRV with your digital assets.

Simply select your preferred deposit method, such as a bank transfer, wire transfer, credit or debit card, e-wallets, PayPal, etc., and the currency you wish to deposit. Tap on “Deposit Funds,” enter the amount you want to deposit and click “Deposit.”

Some deposit methods are extremely fast, while others require confirmation from authorities depending on the amount. Remember to evaluate the fees of different deposit methods since some have more significant fees than others.

NOTE: Binance requires users to complete KYC for fiat transactions.

Step #4: Buy Curve DAO Token CRV

Binance offers the following Curve DAO CRV trading pairs: Bitcoin (BTC), Ethereum (ETH), Tether Stablecoin (USDT), and Binance USD (BUSD).

• Go to Markets and search for CRV. 
• Select a trading pair you wish to buy CRV against. 
• Enter the number of CRV tokens you wish to buy and click on Buy CRV. 
• The order will be filled instantly for the market price, and your newly purchased tokens will be reflected in your spot wallet. NOTE: Before buying CRV, consider that Curve DAO, or crypto assets generally, are highly volatile.

Curve DAO Token Use Cases

Congratulations! Now you’re the proud owner of Curve DAO. Here’s what to do with your crypto assets:

Store CRV

While your CRv tokens can be stored in your brokerage exchange wallet, experts highly recommend storing your precious coins away from exchange wallets, as those might be susceptible to hacks and interference. 

We highly recommend creating a private wallet with your own set of keys. Depending on your investing preferences, you might choose between software and hardware wallets: 

Software Wallets

If you’re looking to trade CRV regularly, software or hot wallets from your selected crypto exchange will suit you. The strength of software wallets lies in their flexibility and ease of use. A software wallet is the most easy-to-set-up crypto wallet and lets you easily interact with several decentralized finance (DeFi) applications.

However, these wallets are vulnerable to security leaks because they’re hosted online. So, if you want to keep your private keys in a software wallet, conduct due diligence before choosing one to avoid security issues. We recommend a platform that offers 2-factor authentication as an extra layer of security.
Examples of software wallets include CoinStats Wallet, MetaMask, Coinbase Wallet, Trust Wallet, and Edge Wallet, amongst others.

Hardware Wallets

Hardware or cold wallets are usually considered the safest way to store your cryptocurrencies as they offer offline storage, thereby significantly reducing the risks of a hack. They are secured by a pin and will erase all information after many failed attempts, preventing physical theft. Hardware wallets also let you sign and confirm transactions on the blockchain, giving you an extra layer of protection against cyber attacks. These are more suitable for experienced users who own large amounts of tokens.
Ledger hardware wallets are arguably the most secure hardware wallets letting you securely manage your digital assets.

Examples of cold wallets are Trezor Model T, Ledger Nano X, CoolWallet Pro, KeepKey, Ellipal Titan, and SafePal S1, amongst others. 

Stake Curve DAO CRV

You can also earn rewards with your Curve DAO token by staking it instead of idly storing it in a crypto wallet. Many popular cryptocurrencies offer staking options.

NOTE: As the crypto market is highly volatile, staking is a high-risk endeavor. However, it promises high rewards as well.

Staking is like owning a savings account in a bank. With crypto staking, you lock a certain amount of coins on a platform that supports CRV-staking, like Binance, to receive annual yields (APY).

Track CRV

The crypto market is volatile, and managing your portfolio could get tricky if you hold multiple assets. Utilizing a portfolio tracker will help you keep track of your Curve DAO token and all your crypto investments from one platform at all times. CoinStats offers one of the best crypto portfolio trackers in the market; you can find more information here. 

You can also monitor the profit, loss, and liquidity of Curve DAO across several exchanges on CoinStats.

CoinStats supports over 250 cryptocurrency exchanges and over 7,000 cryptocurrencies. It offers charting tools, analytical data, advanced search features, and up-to-date news. Here you have the opportunity to connect an unlimited number of portfolios (wallets and exchanges), including:

• Binance
• MetaMask
• Trust Wallet
• Coinbase
• Kraken
• Kucoin
• Bitstamp and 500 others. 

To connect, go to the CoinStats Portfolio Tracker page and:

• Click Add Portfolio and Connect Wallet.
• Click the wallet you want to connect to (e.g., Ethereum Wallet).
• Input the wallet address and press Submit.

Now that you have a better idea of how to buy Curve DAO and what to do with it, it’s high time to present the digital asset and the platform it represents.

What Is Curve DAO?

Curve Finance is a blockchain-based decentralized exchange (DEX) built on Ethereum and based on an automated market maker (AMM) principle. It’s a non-custodial financial platform that enables cryptocurrencies to be swapped using liquidity pools instead of having buyers and sellers by connecting users with exchange protocols.

The system enables minimal slippage and low fees by finding the best routes for users’ swap requests. In so doing, Curve uses liquidity pools, i.e., shared funds backed by digital tokens locked in smart contracts. Liquidity pools incentivize users to become liquidity providers by depositing their tokens into the pools to keep the price satisfactory and get rewards. Curve charges low trading fees while also providing efficient fiat savings accounts for liquidity providers. Moreover, it ensures investors avoid volatile crypto assets while still earning high-interest rates from lending protocols by focusing on stablecoins.

Curve also launched a decentralized autonomous organization (DAO) with CRV as its native token.

Curve DAO Founders

The Curve DAO platform was founded by Michael Egorov, CEO of Curve DAO, a Russian scientist and cryptocurrency expert. The CRV token was launched in 2020 and became one of the popular asset pools for swapping Bitcoin and stablecoins.

Egorov has prior experience with cryptocurrency-related companies and is also the founder of the decentralized bank and loans network LoanCoin. In 2015, he co-founded and became CTO of NuCypher, a cryptocurrency business building privacy-preserving infrastructure and protocol.

Curve’s team participates in the CRV allocation structure and receives tokens according to a two-year vesting schedule, which is a part of the initial launch plan.

In August 2020, Egorov awarded himself 71% of governance by locking a large amount of CRV; however, he later called the act an “overreaction.”

What Makes Curve Unique?

Curve DAO stands out thanks to its technology and technical capacity, which makes Curve.fi a popular DeFi exchange. The AMM operating model connects users with the best routes for their exchanges and enables them to swap tokens and stablecoins at the ideal rates. Curve involves small low trading fees and minimal slippage due to its focus on stablecoins. Moreover, users can retrieve their tokens from the platform at any time.

CRV is Curve Finance’s native utility and governance token used for governance, LP rewards, boosting yields, and token burns. By locking up CRV tokens, users vote on Curve DEX protocol decisions, such as DEX operations, fee structure modification, burning schedules, creating new liquidity pools, etc., and propose protocol updates. The longer the CRV token is locked up, the more voting power token holders have.

CRV is paid to Liquidity Providers as pool rewards and incentives based on the size of their pool share. You can also buy CRV token or earn it when depositing assets into a liquidity pool.

Curve DAO Token Today

Curve DAO daily trading volumes stood around $220 million in early October 2022.

Additionally, Curve DAO provides a wide range of services, such as yield farming and liquidity mining. As discussed earlier, it takes crypto volatility out of the picture, as stablecoins are less susceptible to market fluctuations.

NOTE: While the statement above is true, stablecoins are not immune to liquidity issues, as demonstrated by the Terra implosion earlier this year. We highly recommend traders consider the risks while investing in Curve DAO token or any other crypto asset.

Curve DAO Token CRV

The total CRV supply is 3.03 billion tokens, of which 62% is distributed to liquidity providers. The remaining tokens are distributed as follows: 30% goes to shareholders, 3% – to company employees, and 5% – to a community reserve. The shareholder and employee allocations come with a two-year vesting schedule.

The team opted against CRV pre-mine, and around 750 million were in circulation a year after its launch.

Frequently Asked Questions

Is Curve DAO Token a Trustworthy Investment?

If you want to buy Curve tokens, the investment is secure enough. The platform has been around for over two years, and the developing team is available on social media. The project is instrumental for people trading or holding stablecoins.

Can I Buy Curve Tokens With Bank Transfer?

Yes, several crypto exchanges enable users to buy Curve DAO tokens with fiat money. However, not all fiat currencies might be available on a given exchange.  Also, an extra swap might be required to buy Curve.

Which Cryptocurrency Exchange Should I Choose for Trading Curve DAO Token?

As mentioned earlier, the Curve DAO token is available on multiple platforms. Both, Centralized and Decentralized exchanges feature various CRV trading pairs, enabling you to choose a cryptocurrency exchange according to your convenience and preference. While our review brought Binance as an example, other exchanges like Kraken, Coinbase, Uniswap, etc., offer CRV pairs.

Is CRV Considered a Risky Investment?

Cryptocurrency investments are risky due to their volatility. The general rule of thumb is not to invest more than you can afford to lose. However, as with other popular cryptocurrencies like Bitcoin, Ethereum, or XRP, the coins have utility, which their value stems from.

Conclusion

Curve DAO has established its place in the crypto ecosystem. The platform focuses on providing investors access to stablecoin trading. The Curve DAO token is the platform’s utility and governance token.

Hopefully, this review gave you a clearer understanding of what Curve is and how to buy Curve DAO token.

If you want to learn about decentralized finance and how to make the most of it, read our guide “What Is DeFi.” To learn how to manage your portfolios, visit our “Crypto Portfolio Trackers.”

Disclaimer: The information contained on this website is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any security, financial product, or instrument mentioned in the content, nor does it constitute an investment advice, financial advice, trading advice, or any other type of advice. This is not a recommendation to employ a particular investment strategy.

Cryptocurrencies are speculative, complex, and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable, and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice before relying on this information. Cryptocurrency is a highly volatile market, do your independent research and verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators’ websites before making any decision.

There are significant risks involved in trading CFDs, stocks, and cryptocurrencies. You should consider your own circumstances and take the time to explore all your options before making any investment.